Why won't TurboTax allow me to check the type of Other Income in Box 3 of my 1099-MISC form?

[lewglenn]

TurboTax keeps giving me an error & won't let me file because it requires the type of Other Income in Box 3 but won't let me check the Other Income box

[KrisD15]

Which section of Wages & Income are you trying to enter the 1099-MISC?

[lewglenn]

I got a 1099-MISC from my previous employer for medical expenses. The total sum in Box 3 is $793.75. I filled out all the info that TurboTax requested. When I got to the file my return section I received an error. It took me back to the 1099MISC , showed me the form and insists on asking me in box 3 to "select the form on which to report this income". It won't let me check the other income box and keeps sending me to Schedule C (which I don't need). How do I fix this?

[LenaH]

If your reimbursement for medical expenses are not done under a formal plan, such as a HRA, then these payments are taxable and not exempt from FICA taxes. 

If you receive supplemental wages that are reported on a 1099-MISC, you will still need to pay the uncollected Social Security and Medicare tax, as well as the income tax. This could be why it is populating under your Schedule C and adding self-employment tax (which will end up being your portion of the Social Security and Medicare on this income). 

The IRS classifies supplemental wages as bonuses, severance pay, taxable fringe benefits, vacation pay, back pay, and overtime. Supplemental pay is anything other than your regular pay.

Typically, supplemental wages are added to a W-2. However, there are different withholding methods for supplemental wages that the employer can consider, which are discussed in IRS Publication 15.

Per the IRS, regardless of the method employers use to withhold income tax on supplemental wages, supplemental wages are subject to Social Security and Medicare taxes. 

@lewglenn

[lewglenn]

I don't care whether it is taxable or not. I just want the software to complete and fill in the proper forms. What is happening is that it's asking me to input information that it not on the 1099-MISC that I received, which only has the amount paid in box 3. It won't let me file my return without this info and, no matter what I do, it puts me in this never ending loop. I have tried to re-answer the questions TT asks at least 10 times, to no avail. It appears that there's a bug somewhere.

In any case, I'm not an employee any more, having retired a number of years ago. My past employer is reimbursing payments I made for prescriptions once I have paid a certain (maximum) amount that Medicare Part D prescribes. This is the sum reported on the 1099-MISC in box 3. No other information is given on the 1099-MISC form I received. How do I proceed?