If I was paid as part of a medical study, is this activity a qualified trade or business under Section 199A?

Forum|Forum|1 year ago
February 18, 2025
1 reply
0 views

I participated in a medical study which was supposed to be compensating me for my time, but told me I would not qualify for compensation since I was in the control group. That was found to be in error after the study concluded, so they just gave me everything all at once (it was a 2-year study). Does being a subject in a medical study count as a qualified trade or business under Section 199A?

SharonD007

No, participating in a medical study in an infrequent basis isn't considered a trade or business under Section 199A, but the income that you receive from your participation is taxable. The income is reported ‌as "Other Income" instead of self-employment income. Assuming that you received a Form 1099-MISC, refer to the TurboTax Help article Where do I enter a 1099-MISC? for navigation instructions,

Your income will appear on line 8 of Schedule 1 of your Form 1040 as "Other Income".

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"