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Level 2
April 3, 2020
Question

1099 MISC income reporting on Schedule C

  • April 3, 2020
  • 2 replies
  • 21 views

Received a 1099 MISC tax statement from investment broker for a small amount. Income was generated from mutual fund investments. After entering the amount as MISC Income in the program, Turbo Tax transfers that income to Schedule C and asks me to complete missing info on that schedule. Turbo Tax populates my name as a sole proprietor on Schedule C and then asks me to fill in the name and address of "the business". I do not own or run a business, so I have no idea how to complete the information the program is asking for. Has anyone else run into this before? Any suggestions on how to comply? Thanks

    2 replies

    AmyC
    Level 15
    April 3, 2020

    When you answer the questions in the program, it directs the placement of the money. Since it should not be a sch C, let's go through these steps:

    1. Delete what you have
    2. Income and Expenses
    3. Other Common Income
    4. Form 1099-MISC, start
    5. screen Who paid you
    6. enter the 1099-MISC information
    7. Describe the reason 
    8. mutual fund investment
    9. continue
    10. Screen Does one of these uncommon situations apply?
    11. Select None of these apply
    12. continue
    13. Screen Did the 1099 involve work that's like the main job?
    14. Select No
    15. continue
    16. screen How often did he get income?
    17. Select got it in 2019 
    18. continue
    19. screen Did it involve an intent to earn money?
    20. Select No 
    21. continue
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    Level 2
    April 10, 2020

    I followed all these steps in Turbotax Premier and it still took me to a Schedule C.

    Sue

    Level 15
    April 10, 2020

    I have to assume that you started off at the wrong place.

     

    In the second step that Amy gave you, what did you do? She said "Income and Expenses" but she probably meant "Wages & Income" (if you are using Basic, Deluxe, or Premier). Under Wages & Income, there will be a subheading for "Other Common Income" as she says in step #3.

     

    In TurboTax Home & Business and Self-Employed, go to the Personal tab and choose Personal Income.

     

    In both cases, when you enter the Form 1099-MISC section here, you will get the questions that she reports above. When you answer these questions the way she suggests, then you will NOT have this 1099-MISC applied to a business.

     

    Also, did you delete the 1099-MISC data entry that you did before that was for a business?

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