1099-MISC but not self employed

Forum|Forum|1 year ago
February 7, 2025
2 replies
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Hi,

I received a 1099-MISC which is income from auto-callable contingent income securities. The form is given to me by the bank that I used to buy those investments.

When I enter the 1099-MISC in TurboTax, it triggers a "self-employed" form which I completed. I'm wondering if this is correct since I'm not really self employed. I put my business is "Structured Investments Income" and completed through the question but it seems that TurboTax should give me the option to just say that I'm not self-employed and it was just some other income.

Does it make any difference? Is it possible to get the form loaded without having to add a "self-employed" form?

Thanks!,

Diego

TurboTax Premier Online

Best answer by SharonD007

Yes, your 1099-MISC can be entered as OTHER INCOME so it won't be considered self-employment or business income. First, you should make sure that if you created a business, that you delete it. Follow the instructions below:

Launch TurboTax
You want to make sure that if you created a business earlier, that you delete it:
1. Select Wages & Income
2. Scroll down to Self-employment Income and select Review (If it says Start, skip this)
3. You may see your 1099-MISC here, so delete it by clicking on the trash can on the right
4. Confirm that you want to delete and select Done.

Next, you will enter the 1099-MISC:

Scroll down to Other Common Income
Select Start or Revisit 1099-MISC and add 1099-MISC
Go through the interview questions and when you get to the screen which will ask you to describe the reason for the income, enter auto-callable contingent income securities.
Continue through the screens and when you get to the screen Do one of these common situations apply? select None of these apply. You will also select No that it didn’t involve work and No it didn’t involve the intent to earn money.

StonksAuthor

Level 3

I think the trick is to say the income was made without an intent to make money. Then it just gets added as "other income" instead of creating a self-employed section. Honestly, it might just be fine since it's apparently being filled in the right place doing that (even there was clearly an intent to make an income from the investment).

TurboTax should just fix it and add an option saying it was just some unusual investments (e.g.: structured investments).

SharonD007Answer

Level 14

Launch TurboTax
You want to make sure that if you created a business earlier, that you delete it:
1. Select Wages & Income
2. Scroll down to Self-employment Income and select Review (If it says Start, skip this)
3. You may see your 1099-MISC here, so delete it by clicking on the trash can on the right
4. Confirm that you want to delete and select Done.

Next, you will enter the 1099-MISC:

Scroll down to Other Common Income
Select Start or Revisit 1099-MISC and add 1099-MISC
Go through the interview questions and when you get to the screen which will ask you to describe the reason for the income, enter auto-callable contingent income securities.
Continue through the screens and when you get to the screen Do one of these common situations apply? select None of these apply. You will also select No that it didn’t involve work and No it didn’t involve the intent to earn money.

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bngpeyla

Level 2

I have income from the state of MN on a 1099-Misc, when I key it in as misc income and hit return it states "We'll include this income in the Self Employed Section C"

I have received this income every year since 2022, and it has always placed it in Misc Income..

I followed the directions in this help message, deleted the business it created deleted the schedule C.

Then went back to enter the data again with the same result it put it in the self employed section. Why is the software working differently this year? and how do I resolve?

I keyed in that this income is from Sustainable Forest Incentive Act.

DawnC

Level 15

Delete the Schedule C and 1099-MISC again and this time when you re-enter the 1099-MISC, answer the question about how often you receive this income to 2025 ONLY. If you regularly receive the income, TurboTax will apply it to Self-Employment and place it on Schedule C. If you answer as follows, the income goes to Other Income - Line 8 of Schedule 1- Form 1040. As you enter the form:

After you enter the reason for the 1099-Misc, mark None of the above on the next screen (uncommon situations).
Answer Did the refund involve work that's like your main job? NO
Answer How often did you get income for refund? You got it in 2025 only
Answer Did the refund involve an intent to earn money? NO

How to delete forms in TurboTax Online

How to delete forms in TurboTax Desktop

If you treat your forest land as a business, you would typically report this on Schedule C. (counts as self-employment)
If you are a farmer, it goes on Schedule F. (counts as self-employment)
If you are an investor/individual and the land is for personal or investment use, it is generally reported as "Other Income" on Schedule 1 (Form 1040).

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