solar energy monthly SMART payment from Electrical supplier

[timmykeefe]

Hi

 I live in Massachusetts, and I received a monthly payment called a SMART payment from the electric company because installed solar panels in 2020.

  I receive a 1099-MISC. I had trouble figuring out where to include it in my taxable income, and ended up filing a Schedule C, which required me to pay self employment tax.

  I am relatively sure this is not self employment. How do I report this on Turbotax so it can appear on line 8z on schedule 1?

[PattiF]

Yes, you are correct that this is non self-employment income and should be categorized as Other Income.

Here are instructions on how to enter so that you do not file a Schedule C for this. Delete the 1099-MISC from where you had previously entered it, and then re-enter it according to these instructions below.

You can enter the 1099-MISC in TurboTax as "Other Common Income," which is reported on line 8 of 1040 Schedule 1 and will not generate Schedule C or SE tax.  Please use the following steps:

1. Click on Federal > Wages & Income.
2. Scroll down to the Other Common Income section. 
3. Click on the Start/Revisit box next Form 1099-MISC. 
4. On the screen Did you get a 1099-MISC?  click on the Yes button.
5. On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC. 
6. On the following screens, answer the following questions:
   • Did it involve work that's like your main job? No.
   • You got it in 2021
   • No, it didn't involve an intent to earn money
7. Continue through the rest of the interview screens. The income will appear as Other Income.