I have crop insurance proceeds reported on 1099-Misc that I want to defer to 2021. In the input area for Crop Insurance for Farm Rental Income and Expense, there is only a field for crop insurance NOT reported on a 1099. If I enter it here it gives me the option to defer it. However, if I enter it in Farm Income Reported on 1099-Misc (because it was reported on a 1099) TurboTax does not give me the opportunity to defer it. How can I enter the crop insurance proceeds as both reported on 1099 AND defer it to 2021?
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I had similar question for farm rental (form 4835). The solution seems to be to NOT report the crop insurance proceeds in the 1099-MISC part of farm income step-by-step. Instead report the crop insurance proceeds further down under the heading "Crop Insurance Payments/Federal Disaster payments". After I did that I got the option to defer.
I'm not sure why there are 2 entry possibilities.
Did you get any clarification from TurboTax?
The entry of Forms 1099 is not a requirement, however in most cases it's a convenience. The IRS already has a copy of your 1099-MISC. Due to the many changes this year, there are experiences where a direct entry is the best solution.
As you see, reporting the crop insurance proceeds in the specific section for this income on the Schedule F produces the necessary results. Do not try to make two entries.
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