Where do i enter strike pay at?

[VolvoGirl]

Did you get a form for it like a W2 or a 1099Misc or what?

[Mike9241]

it's complicated. it may or may not be taxable. see this thread for the various possible situations. I would start with the second scenario

https://deductions.tax/strike-pay-tax/ 

[princess10138720]

Yes i have a form. Just don't know where that info goes

[VolvoGirl]

OK what form do you have?

[princess10138720]

W9

[princess10138720]

1099-misc

[princess10138720]

1098-misc

[ThomasM125 · Accepted solution]

To enter a form 1099-MISC, you need to be in the Wages and Income Section, then choose Other Common Income, then Income from Form 1099-MISC.

[atclark73]

I have tried several times to enter the 1099-MISC information.  When it gets to the section where my Federal tax is reviewed, I started getting messages to fill in blanks on a form for self-employment.  These do not apply to strike fund check and it should not be taxed at self-employment rate.  How do I enter the information correctly?  I am supposed to check No, it didn't involve intent to earn money?

[PatriciaV]

@atclark73

Please clarify if you indicated this income was related to your main job (assuming the strike pay was for your main job). This option would normally prevent the self-employment tax calculation.

[atclark73]

Yes the strike pay was the main job.  

[atclark73]

Do I mark yes or no that it involved intent to earn money?  I don't really understand what that means?  

[DawnC · Accepted solution]

No.  You don't want to indicate that this is self-employment; it isn't.   You got money (from the union?) to picket, protest or otherwise go on strike.    After entering a description (strike pay), TurboTax asks if the work you did for this money was like your main job, answer No, otherwise, it is self-employment.   The strike pay replaced some of the lost income from your regular job, but it was not for doing work that was like your main job.   

Then it will ask about how often you get the money - answer 2021 only.   If you expect this pay regularly or receive it repeatedly, it is probably self-employment.    And on the intent to earn money question, answer No again.   If the payment was for something you did trying to earn income, that is self-employment.   But this was paid to you to NOT work.  

If you enter it like that, the income will show up on Line 8 of Form 1040 and will not be subject to self-employment tax.   If you paid into a strike fund in addition to paying union dues, the portion of the 1099-Misc payment that represents a return of your strike funds is not taxable to you.  

@atclark73

[atclark73]

Do I select Other Common Income to enter the info?  I tried to enter it in Lee Common income and it won't let me delete that entry.