1099 MISC

[johndn]

I'm retired and one of the benefits from my former employer is reimbursement for Medigap coverage if I purchase it from the former employer.  Every year they issue a 1099 MISC with the amount in box 3. In Turbotax, I answer the questions under "Income from form 1099 MISC" appropriately but if I check the boxes indicating I got the 1099 MISC in prior years and next year it insists that I pay self-employment taxes. This was not employment and I should not have to pay self-employment taxes. Is there a way around this other than lying about the years I get the form?

[AnnetteB6 · Accepted solution]

The best way to handle your reimbursement reported on Form 1099-MISC is to indicate that you have only received it in the current year and that you do not expect to receive it again next year. 

The answers to these questions are not shared with the IRS, so you do not need to worry that you are lying on your tax return.  You are simply answering the questions so that TurboTax will report your information in the proper section of your return.  

[johndn]

Sounds good!  Thanks,