1099- Misc received for participating in medical study

[toofan1]

I participated in a one time medical study. I received form 1099-Misc. What line of Turbotax do I show it? It is not subject to Social Security Deductions.

[MinhT1 · Accepted solution]

If you receive a form 1099-MISC for participating in a medical study, then you aren't considered as self-employed and don't need to file a Schedule C.

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this didn't involve an intent to earn money. The amount will be reported as Miscellaneous income and won't be subject to Self-employment tax.

In TurboTax, there's a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2023, not in previous years, and not in 2024, you will then have the screen where you can say that it didn't involve an intent to earn money.

[Mjohnsen]

I went through the process and I did not have the option to answer the question about whether I did the medical study to make money.  TurboTax Deluxe simply told me I needed to create a Schedule C.  The income was reported on a 1099-MISC under Box 6 (Medical and Health Care Payments).  But there is no option or box to check to prevent creating a Schedule C.  TurboTax went so far as to inform me I can deduct my business expenses for this.  Thoughts? 

[PatriciaV]

The company that provided Form 1099-MISC should have used Box 3 Other Income. If you're comfortable entering the amount in Box 3 rather than Box 6, you should be able to indicate this was not an intent to make money (a business).

Your other option is to delete your 1099-MISC entry and instead report this as Other Income with a description of "Medical Study Participation." 

1. Start in Federal Taxes >> Wages & Income >> Less Common Income >> Miscellaneous Income >> Other Reportable Income. Click "Start" and work through the interview.
   -- Or search on "other reportable income", click on the "jump to..." link, then answer "No" to other wages. Click Start beside "Other reportable income" and follow the prompts.
2. After entering the info from the 1099-MISC, continue until you see the question about this being connected to your main job, and say "no."
3.  Check only the box for 2023 income. 
4. Then answer that this was not an "intent to make a profit." 

Those three answers should classify this as "Other Income", which will appear on Line 8 on Form 1040, and not self-employment on Schedule C.

@Mjohnsen