Why do i need to pay a self-employment tax when the only 1099MISC income is a stipend for years of volunteer fire department services?

Which box of the Form 1099-MISC is the payment in?

Other income

You have to pay income tax on the stipend. It is income to you. But you do not have to pay self-employment tax on it. It is not self-employment income. Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported as "other income," and not as self-employment income.

 

• In the Search box enter "1099-misc" (without the quotes). Then click the link that says "Jump to 1099-misc."
• The first screen asks "Did you get a 1099-MISC?" Click Yes.
• On the next screen enter the information from the 1099-MISC form, then click Continue.

TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.

 

• "Describe the reason for this 1099-MISC." - It doesn't matter what you enter. Enter a short description such as "Stipend." Click Continue. You will see this description used in some of the subsequent questions, but it will not appear on your tax return.
• "Does one of these uncommon situations apply?" - Select the last choice, "None of these apply," and click Continue.
• "Did the Stipend involve work that's like your main job?" - Select No and click Continue.
• "How often did you get income for Stipend?" - "I got it in 2019" will already be checked. Don't check any of the other boxes. Just click Continue.
• "Did the Stipend involve an intent to earn money?" - Select No and click Continue.

 

This will report the income as "other income" on Schedule 1 line 8 with the description "Other Income from box 3 of 1099-Misc."

 

Or use this path for a quicker resolution ... 

 

You can report it as other income on Sch 1  line 8. Here's how to enter it in TurboTax.

• Click the Federal Taxes tab ( Personal in the Home & Business version)
• Click Wages & Income. (Personal income in the H & B version)
• On the screen "Your 2019 Income Summary," scroll all the way down to the last section, "Less Common Income."
• Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
• On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."
• The next screen asks, "Did you receive any other taxable income." Click Yes.
• On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.
• On the next screen click Done.

The income will be reported on Sch 1 line 8 with the description that you entered.