We received a 1099-misc with $25 in box 6 (Medical and health care payments). My husband believes this was either a mileage reimbursement or a research study payment. TT wants this entered on a schedule c for self employment income. Is this correct or should I be entering this a different way?
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It should not be self-employment income. You need to edit the 1099-MISC entry and on the screen that says Does one of these uncommon situations apply? choose the I was in a research study and this was a payment option, and then indicate that you did not perform a service to earn the money paid to you. Then, it will be treated as Other Income as opposed to self-employment income.
Thank you!
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