1099-MISC

[tas1126]

I have entered the 1099-MISC information from my investment company statement into TurboTax.  The statement says this income was for contract fees.  TurboTax is asking me the intent of the income.  Is an investment that results in income such as this considered to be with the intent to earn money?  Thank you for helping me understand which answer to choose (yes/no). 

[DeanM15]

The question on the intent to earn money will determine whether you pay self-employment tax or not. 

The question for you is whether the "contract fees" were a business venture or work of some kind or not. If it was a business venture or work of some kind, then you should likely pay self-employment tax. 

If the contract fees were unrelated to work or a business venture, then you should not be paying the self-employment tax. 

If you answer the intent to earn money question with a Yes, you will pay self-employment tax. If you answer the question with a No, you will not.