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KP2018
Returning Member

1099-MISC form in Box 3 requiring Schedule C but I'm not self-employed, I earned this income from a clinic affiliated with my primary employer while carrying out my regular responsibilities

I am a medical resident and as part of my residency program, we rotate at an outpatient clinic that my hospital is affiliated with a couple times per month. We are employed and paid directly by the hospital and the clinic is usually not involved in our pay.

 

However, the clinic provides an incentive for "meaningful use", which basically means you meaningfully used electronic health records (EHRs). For meeting that, I received $1000 on a 1099-MISC form in Box 3 as "other income" from the clinic directly (not my primary employer - the hospital). Other than that I received no income from the clinic - it's a one-time thing and my regular income was reported in my W-2 from my hospital. Does this mean I need to fill out a Schedule C for that $1000 of income? I am not self-employed, and it was earned while I was doing my job. 

2 Replies
NCperson
Level 15

1099-MISC form in Box 3 requiring Schedule C but I'm not self-employed, I earned this income from a clinic affiliated with my primary employer while carrying out my regular responsibilities

Yes you do because you worked to earn it
IsabellaG
Employee Tax Expert

1099-MISC form in Box 3 requiring Schedule C but I'm not self-employed, I earned this income from a clinic affiliated with my primary employer while carrying out my regular responsibilities

No, this is a special incentive payment for "meaningful use of electronic health records", not compensation for services rendered. Your employer (the hospital) didn't pay you, the clinic did. It's reported in Box 3 for "Other Income". 

 

To report this 1099-MISC in TurboTax, enter the 1099-MISC, describe the payment as an incentive award, continue to say that it's not for work that's like your main job, that you only got it in 2018, and that it did not involve an attempt to make money. 

 

The income will be correctly reported as "Other Income" on your return, and you won't have to file a Schedule C.

 

 

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