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1099-misc is money returned to me for not using a Legal Service Plan Trust through my work. How do I get around not filing Schedule-C since it is not self employment?

 
4 Replies
Employee Tax Expert

1099-misc is money returned to me for not using a Legal Service Plan Trust through my work. How do I get around not filing Schedule-C since it is not self employment?

In order to enter this as not self-employment, follow the instructions below:

 

To enter other income that is non-cash:

 

  1. Go to Income
  2. Scroll down to Other Common Income
  3. Click Start next to 1099-MISC
  4. Add a 1099-MISC, enter payer and Box 3 income, then Continue
  5. Describe the reason for this 1099-MISC and select What if I got my 1099-MISC for something other than a job? Continue
  6. Does one of these uncommon situations apply? Select none of these apply at the bottom of list, then Continue
  7. And check box for No, it doesn't involved work like Jack's main job

This will not be entered as self-employment then.

Level 1

1099-misc is money returned to me for not using a Legal Service Plan Trust through my work. How do I get around not filing Schedule-C since it is not self employment?

I have this exact same situation and followed your exact procedure 4 times and it does not work. TurboTax keeps generating a Schedule C and it is frustrating. Any other work around?

Employee Tax Expert

1099-misc is money returned to me for not using a Legal Service Plan Trust through my work. How do I get around not filing Schedule-C since it is not self employment?

In addition to the instructions provided above by pattif12, be sure to indicate that you only received the payment in 2020 (even if it was received in other years and you expect to receive it again).  Also, indicate that the payment did not involve an intent to earn money.  

 

This should place the income on Line 8 of Schedule 1 without requiring a Schedule C.

 

@shcje

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Level 1

1099-misc is money returned to me for not using a Legal Service Plan Trust through my work. How do I get around not filing Schedule-C since it is not self employment?

Thanks for the reply. I tried that, plus multiple other ways, and it still generated a Schedule C. I ended up deleting the file and started completely over four times. The final successful time, I entered it under "Less Common Income - Miscellaneous Income" as someone recommended in another thread on this topic.

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