1099-MISC for Award
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Returning Member

1099-MISC for Award

Received a 1099-MISC for an Award payment from my company.  Turbo Tax is treating it as if I have a business which is not the case and is requiring a business name entered for Schedule C.  There is no business name because there is no business.  Turbo Tax will not allow me to complete the return without any errors.   How can I proceed?

8 Replies
Employee Tax Expert

1099-MISC for Award

Delete the Schedule C and follow these steps.

 

  1. Sign in to TurboTax Online, click Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer).
  1. Click on Federal Taxes at the top of the screen.
  2. At the bottom of Your Income box pick the option in blue to help me add other income, then jump to full list;
  3. Scroll down the page to the last section titled: Less common Income and click show more;
  4. Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
  5. Scroll down to the last option titled Other reportable income and select start or edit;
  6. When it asks, "Any other reportable income?" say yes then type in a description and the amount to report it on your tax return.

This will place it on "Other Income" line of your Form 1040.

 

 

To Delete a Form

Open your return in TurboTax. 

In the left side bar, select Tax ToolsTools.

In the pop-up window Tool Center, choose Delete a form.

Select Delete next to the form/schedule/worksheet and follow the onscreen instructions

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Level 11

1099-MISC for Award


@Robert87 wrote:

 an Award payment from my company.  


What exactly was the award for?  In most cases, it should be added to your W-2.  In other cases, it should be tax free.

Employee Tax Expert

1099-MISC for Award

One would assume it wasn't added to the W-2 form if a form 1099-Misc was issued. Furthermore, if it was associated with your job, it is probably compensation in some form or other. So, to be technical, if it was not reported on your W-2, but is compensation, the next best way to report it would be as self-employment income.

 

To do so, you would have to answer the business related questions, as they are necessary to have the business schedule C completed properly.

 

Also, if the amount is nominal, you're probably not going to get into trouble doing as @CollenD3 suggested.

 

 

 

 

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Level 11

1099-MISC for Award


@ThomasM125 wrote:

One would assume it wasn't added to the W-2 form if a form 1099-Misc was issued. Furthermore, if it was associated with your job, it is probably compensation in some form or other. So, to be technical, if it was not reported on your W-2, but is compensation, the next best way to report it would be as self-employment income.

 


No, *IF* it is taxable compensation that SHOULD have been on the W-2, the proper way to report it is on Form 8919.

Returning Member

1099-MISC for Award

Let me clear up some details...

The compensation was from my company as an award payment for patents awarded.  This compensation was reported on a 1099-MISC not on my W2.  So I entered the data in TurboTax for as income from Form 1099-MISC.  When I report the 1099-MISC Turbo Tax asks if the award involved work that is like my main job, I answered "yes".  Now Turbo Tax is treating it as if I have a business which is not the case and is requiring a business name entered for Schedule C.  There is no business name because there is no business.  Turbo Tax will not allow me to complete the return without any errors.   How can I proceed?

Thanks

Returning Member

1099-MISC for Award

Let me clear up some details...

The compensation was from my company as an award payment for patents awarded.  This compensation was reported on a 1099-MISC not on my W2.  So I entered the data in TurboTax for as income from Form 1099-MISC.  When I report the 1099-MISC Turbo Tax asks if the award involved work that is like my main job, I answered "yes".  Now Turbo Tax is treating it as if I have a business which is not the case and is requiring a business name entered for Schedule C.  There is no business name because there is no business.  Turbo Tax will not allow me to complete the return without any errors.   How can I proceed?

Thanks

Employee Tax Expert

1099-MISC for Award

 

If you are in the business of obtaining patents and then selling them, it is a business. 

If this was a one-time award, answer "No" and move on. 

 

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Returning Member

1099-MISC for Award

Went back and changed my answer to "no" and Turbo Tax is still asking my to provide a business name.  

There is no business name because there is no business.  Turbo Tax will not allow me to complete the return without any errors.   How can I proceed?

Thanks

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