Where do I enter a retirement stipend received to offset health insurance in retirement?

Forum|Forum|2 years ago
February 6, 2024
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My wife receives a monthly stipend in retirement as her retirement package. Her former employer sends a 1099-MISC, with the annual amount in Box 3. TT continues to classify it as income earned for services performed, as if she is a consultant or independent contractor. However, the allotment is a retirement benefit and not for any services provided. It should be noted that this is the first time her former agency has given a benefit package for a retiring Executive.

TurboTax Home & Biz Windows

Best answer by ThomasM125

You enter the income in the Form 1099-MISC entry section in TurboTax, as it appears you have already done. In order to have the income appear as other income as opposed to self-employment income, you need to first indicate that it is not associated with work like your main job:

And that you only received it in 2023:

And that you didn't have an intent to earn money:

Those questions are designed to determine if the income will likely be considered to be self-employment income by the IRS. They won't appear on the tax return, so if you are sure the income isn't self-employment income, you can give those answers and the income on your Form 1099-MISC will be properly reported on your tax return.