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dchbbc
New Member

Can I use a Schedule 1 and not a Schedule Con Turbo Tax? I don't need the C but it wants me to complete it?

I get a 1099-MISC for free legal services my employer gives us (I'm retired) that amounts to under $24. Legal services says we don't need to file a Sched C because it is a "fringe benefit" and the IRS classifies it this way since 1992. Here is what they said.

IRS Box 3 instructions state that miscellaneous income goes on the “Other income” line of Schedule 1 for those using Form 1040 or Form 1040NR.
The instructions for Form 1099 NEC Box 1 do not apply.
You don’t have to file a Schedule C with your tax return because the 1099 reported amount is not self-employment income.
When I do turbo tax it ask me all of the questions as if it is self employment and makes me do a schedule C. If I skip those steps next year, will Turbo Tax still let me e-file or will it keeps asking me to correct my taxes before I file? I filled them out this year but I don't know if I filled them out correctly since it's not "income" per say. I hate having to pay the $30 extra to claim $24.
4 Replies
MinhT1
Expert Alumni

Can I use a Schedule 1 and not a Schedule Con Turbo Tax? I don't need the C but it wants me to complete it?

If you receive a form 1099-NEC for a legal service plan, then you are not considered as self-employed and do not need to file a Schedule C.

 

In TurboTax, enter your form 1099-NEC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

 

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-NEC only in 2020, not in previous years and not in 2021, you will then have the screen where you can say that it did not involve an intent to earn money

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dchbbc
New Member

Can I use a Schedule 1 and not a Schedule Con Turbo Tax? I don't need the C but it wants me to complete it?

Thanks. But as I stated, I receive a 1099-MISC not NEC. so I'm not sure if this would work.

Can I file it under the NEC section even though they send me a MISC form?

 

As far as receiving it every year, we never know if it will be given to us the next year or not. Over the years it has come and gone so I could honestly say that I won't have it next year.

ColeenD3
Expert Alumni

Can I use a Schedule 1 and not a Schedule Con Turbo Tax? I don't need the C but it wants me to complete it?

Include it in Other Income. It is not self-employment income.

  • Wages & Income
  • I'll choose what I work on
  • Less Common Income select Start (or Update) for 
  • Miscellaneous Income.
  • Other reportable income and you can enter your own description(s) and amount(s).

 

 

dchbbc
New Member

Can I use a Schedule 1 and not a Schedule Con Turbo Tax? I don't need the C but it wants me to complete it?

Thanks.

I think my problem was I didn’t choose "I’ll choose what I work on"

 

I’ll try it next year

Thanks again

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