IRS Notice 2014-7 income is being counted as self-employment income in TurboTax

Forum|Forum|3 years ago
January 24, 2023
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My wife and I are both paid through a state program that qualifies as Notice 2014-7 income. Our agency provided us with 1099-NEC forms. If I enter them in TurboTax under self-employment income and then try and "reverse" the income by entering the negative amount under "Other Income" with a "IRS Notice 2014-7 excludable income" tag TurboTax is still counting the income as taxable self-employment income. Should I not include the 1099-NEC form, or is there another way to enter it so it is not counted?

Thanks!

Mike

TurboTax Self Employed Online

AmeliesUncle

Does this activity rise to the level of a business? If so, it is correct. The payments are not subject to income tax, but 2014-7 does not affect Social Security and Medicare taxes (including self employment tax).

If it isn't a business, why are you entering it in the business section?