I was attempting to report a 1099-MISC (approximately $3000) from a strategic management asset account (SAM) through my financial advisor at LPL Financial. TurboTax imported the data, but placed the numbers in Schedule C and an attachment for business income. Self employment taxes were calculated ($415) and I was asked to fill in an accounting method and other business related details. I had to make numerous changes everywhere on my 1040, Schedule 1, Schedule C, Schedule 8812, and two other forms because of the amounts affected by the self employment tax. What a hassle! The reason I am posting here is to warn others in case you have a 1099-MISC that ends up being treated as business income when it is not. Also, I cannot find a way to alert TurboTax of this error (when I called, the representative said she was aware of this problem but didn't state anything further).
E nter it in the personal section, Other Common Income Form 1099-MISC . To ensure it does not go to Schedule C (self-employment), you will answer the follow-up questions accordingly.
On the Describe the reason for this 1099-MISC screen, enter a description of the other income. (award/stipend)
Select None of these apply on the Does one of these uncommon situations apply? screen.
Select No, it didn’t involve work like my day job on the Did the involve work that's like your main job? screen.
Select I got it ONLY in 2023 on the How often did you get income for? screen.
Select No, it didn’t involve intent to earn money on the Did the work involve an intent to earn money? screen.
Answering differently to any of these questions will imply self-employment and generate Schedule C.
E nter it in the personal section, Other Common Income Form 1099-MISC . To ensure it does not go to Schedule C (self-employment), you will answer the follow-up questions accordingly.
On the Describe the reason for this 1099-MISC screen, enter a description of the other income. (award/stipend)
Select None of these apply on the Does one of these uncommon situations apply? screen.
Select No, it didn’t involve work like my day job on the Did the involve work that's like your main job? screen.
Select I got it ONLY in 2023 on the How often did you get income for? screen.
Select No, it didn’t involve intent to earn money on the Did the work involve an intent to earn money? screen.
Answering differently to any of these questions will imply self-employment and generate Schedule C.