I received a 1099-MISC for NYS Paid Family Leave and it is putting it in as self-employment and charging a self-employment tax. How do I fix it?

Forum|Forum|2 years ago
January 31, 2024
3 replies
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I've read some posts regarding seeing a preview of the 1040 and changing info, tried that- it won't let me. Last year, I believe I had the option to select that the income was not for the intent of earning money, it didn't give me that option this year.

TurboTax Deluxe Online

ThomasM125

You should see this screen after you enter your Form 1099-MISC where you indicate that the income does not involve work like your main job. I suggest you look to make sure you entered the income in box 3:

Later in the routine you will see the screen asking if you had an intent to earn money:

If you follow those steps the income won't be considered self-employment income.

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dmcasile

Hi! I am also having the same issue when entering my 1099-MISC for PFL. I am not asked the question if the PFL was for the intent to earn money. I have made sure I answered No that it is not like my main job. Is there a way to prompt this question to come up for me?

MonikaK1

You can enter the Form 1099-MISC and identify that it was not income from working so that it doesn't get misclassified as self-employment income following these steps:

Select Income from Form 1099-MISC under Wages and Income.
Enter the payer information and dollar amount
Enter a description for the payment
When asked about Uncommon Reasons, select that none apply or select one that adequately explains the reason
When asked about the frequency of payment, select received in 2022
When asked "Did (description) involve an intent to earn money?" answer No (that is, it is not earned income and therefore not subject to self-employment tax)

There is more than one place in TurboTax where you can enter a Form 1099-MISC. If you already entered it in another section, delete that entry.

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jjeastman88

i am having the same problem and it's forcing me to pay a self employment tax. i have been back and forth with various turbo tax reps and nobody has the fix to this and i do not feel comfortable filing when i know i should get that tax in my refund not to pay over 30% of my Pfl income.

JohnW152

To enter your Form 1099-MISC paid family leave information in TurboTax Online without triggering self-employment tax:

Open TurboTax Online
Select Tax Home in the left pane
Select the dropdown to the right of Wages & Income
Select Pick up where you left off, Review/Edit or the edit pencil
On the Great! We've got your income info page, select the dropdown to the right of Other Common Income -- Tax refunds, 1099-G, 1099-NEC, 1099-MISC, 1099-K
Select Start to the right of Form 1099-MISC
Select Yes on the Did you get a 1099-MISC? page
Enter the information from your 1099-MISC on the Let's enter the income from your 1099-MISC page, then select Continue
On the Describe the reason for this 1099-MISC screen, enter something to the effect of "Paid Family Leave," then select Continue
On the Do one of these uncommon situations apply? screen, select the bullet next to None of these apply, then select Continue
On the Did the Paid Family Leave involve work that's like [your] main job? page, select the bullet next to No, it didn't involve work like [your] main job, then select Continue
On the How often did [you] get income for Paid Family Leave? page, answer appropriately, then select Continue
On the Did the Paid Family Leave involve an intent to earn money? page, select the bullet next to No, it didn't involve an intent to earn money. This indicates to the program that this wasn't self-employment income, so self-employment tax won't be triggered. Select Continue
On the Your 1099-MISC summary page, select Done, unless you have more Forms 1099-MISC to enter

If the TurboTax Online navigation described above doesn't look like what you're experiencing, see the TurboTax Help article Why does the TurboTax navigation menu look different for me?.