Does a retiree benefit for free legal services provided from my Union that I receive on a 1099 misc have to be reported as Business Income?

[elliet-ispmgt-com]

Prior years, Turbo Tax listed this 1099 misc under miscellaneous income which did not require schedue C to be filled out.Why is it showing as business income (self employment) this year?

[JulieR · Accepted solution]

No. The income from this 1099-Misc should be listed in Box 3 - Other Income, and should not be reported as business income on your return.  If the 1099-Misc you received lists this income in any other box, contact the payer and ask for a corrected form.  If not, check to make sure you made your entry for this 1099-Misc in box three and if not, edit your entry.

[msbneb]

I have run into the same situation and the income is reported in box 3 as other income. The problem is this isn't relating to performing work but the generation of the Schedule C seems to depend on how you classify  the income if an uncommon situation applies.  I had selected  "None of these apply" but also went into the form and tried selecting  "Other Income"  but until I selected something other than "None of these apply" it treated it as Business income.   Maybe if another  type of uncommon situation that would handle "Other non-business income" would make it clearer.   The net is it doesn't appear to store the specific uncommon situation  so I just selected  "This was a manufacturer's incentive payment"  and this set the  box 3 in the form as Other income and  removed the creation of the Schedule C