Why is Turbo Tax adding self employment tax when I received a 1099-MISC for prize winnings (Box 3). It is not subject to SE tax per IRS.

When you enter your prize winnings from the Form 1099-MISC be sure you are selecting "this was prize winnings" when the screen comes up.

The instructions here will take you to your Form 1099-MISC entry screens.

1. Sign into your TurboTax Account
2. Select My Account in the upper right, then Tools
3. Select Topic Search (image attached)
4. Search for 1099misc, then Go
5. Continue to enter your information
6. Uncommon Situations - This was a prize

This will provide the correct outcome on the tax return, the income should be on line 21 of the Form 1040.  It will not be subject to self employment tax.