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Level 2
posted Apr 7, 2022 12:24:51 PM

Under my 1099-MISC form, I have some money listed under Box 3 (other income). Can I use that income as intent to earn money?

0 3 425
3 Replies
Expert Alumni
Apr 7, 2022 12:35:35 PM

It depends.  For the year you are filing, earned income includes all income from employment, but only if it is includable in gross income. Examples of earned income are: wages; salaries; tips; and other taxable employee compensation. Earned income also includes net earnings from self-employment.

If you received the money for something else then it is not considered earned income.

 

Please update here if you have more questions, include exactly what the money was received for.

Level 2
Apr 7, 2022 12:37:45 PM

It was a deposit match cash reward on Robinhood. If I still report it as “intent to earn money” which is technically true will I get into trouble with IRS?

Expert Alumni
Apr 7, 2022 1:00:31 PM

That is not earned income, it's more like interest.

You are not self-employed, but TurboTax thinks you are because of the way you entered it on your return.

  • Wages & Income
  • Scroll to Other Common Income
  • Select Income from a 1099-MISC
  • Post your information from the form [Continue]
  • Describe the reason for this 1099-MISC
  • Post XXXX
  • Does one of these uncommon situations apply?
  • Select None of the above
  • Did the XXXX involve work that's like your main job?
  • No
  • How often did you get income for XXXX?
  • Check Got it in 2021
  • Did the XXXX involve an intent to earn money?
  • Answer No

If you do not follow this posting procedure it will result in self-employment.  You would also have to pay 15.3% in self-employment tax (Social Security & Medicare).