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Level 1
posted Mar 11, 2022 4:55:57 PM

1099_MISC and Schedule C

I received a 1099-MISC for legal services - a fringe benefit from my union. TurboTax seems to insist I do a Schedule C. There are no deductions and it is only $23. Is there a way to just keep this under Other Income?   I was able to do it last year, but this year it seems to insist on the Schedule C.  Then it actually counts it twice, as other income and as a business profit.

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1 Replies
Expert Alumni
Mar 12, 2022 6:04:23 PM

You need to clear out the Schedule C entries and then correct the 1099-MISC entry to a "sporadic activity or hobby income".

 

To delete, please follow the instructions below:

  1. Within your return in TurboTax Home and Business search for Schedule C.
  2. Click the Jump to link in the search results.
  3. If you get to a self-employment summary screen, delete the self-employment income line with the Delete button and confirm the deletion
  4. Click Done 
  5. Click on Forms icon at the upper right of the screen
  6. Scroll down to your Schedule C and Schedule SE and click on each if they are still there - you can Delete Form in the preview pane once you have clicked on the form

Go back to your 1099-MISC entry by searching for it with the magnifying glass.  Go through your entries until you get to the Describe the reason for this 1099-MISC.  Enter "Union benefits" for your specific situation and Continue.  The next answer is None of these apply and Continue.

When you get to the question if it involves work like your main job, choose No.  The next question asks about how often you get the income and you should choose 2021 only.  The next question asks about your intent to earn money from this activity, which you of course did not.