Why my 1099-Misc triggers schedule C and Schedule SE-T? How to get rid of these two schedules?

[yonghai]

I received a 1099-Misc box 3 for my scholarship, which should not be taxable, because I didn't need to do any service as a return.

I'm very surprised to see two new schedules in Turbo Tax,  one is Schedule SE-T, which generates significant Self-Employment Tax, and Schedule C, which asks me about my business name and address. These two schedules are not relevant to my situation. 

Do you have any suggestion on how to get rid of these two funny schedules in Turbo Tax?

Any advice is really appreciated. I have been stuck in this situation for the last few days.

Thanks.

Yonghai

[PattiF · Accepted solution]

You can enter the 1099-MISC so that it is not considered self-employment.

In TurboTax Online: 

• Go to Other Common Income in the Income & Expenses section,
• Click Start at the 1099-MISC box
• Enter info from 1099-MISC,
• Describe the reason for this 1099-MISC, and Continue
• Does one of these uncommon situations apply?, Choose None of these apply and Continue
• Check that No, it didn't involve work like my main job
• How often did you get income for stipend Pay, Choose I got it in 2021 and Continue
• Did the stipend pay involve an intent to earn money, Choose, No, it didn't …. And Continue

[yonghai]

Hi PattiF,

Thank you for your information.

It works, after I deleted my original one and re-entered 1099-misc following your suggestion.

Yonghai

[Smk2398]

I followed these directions, but when it comes up in the state again it is still trying to make me file as self employed. Please help? 

[DianeW777]

It's usually best to start a new thread when an old question comes up.  It may be helpful to know your state as well, see the information below.

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions: 

TurboTax Online:

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax CD/Download:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number and state then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

@Smk2398 

[ladenfj]

i'm using the 2023 version of TT and it doesn't ask me this step: 

• Did the stipend pay involve an intent to earn money, Choose, No, it didn't …. And Continue

any ideas.  these are dividends from structured investments and shouldn't be subject to SE tax.

[ladenfj]

never mind...i found my mistake.  i was selecting multiple calendar years and not just 2023.  problem solved!