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GM Legal Service

Hello,My name is Dave and I'm trying to input info about GM Legal Services. I'm answering all the questions the way I think I'm supposed to and it keeps taking me to a schedule C.  It's wanting information thats not on the 1099-Misc. I've checked the support chats and there either out dated or the info that I'm reading isn't matching my problem. Example, It's telling me to check 2019 or 2020 which isn't available on my screen. Please , need Help

Thank You 

Dave M.

[email address removed] 

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3 Replies
DawnC
Employee Tax Expert

GM Legal Service

Is this a1099-misc you received from a lawsuit settlement?   Is it for back-wages?   If so, you need to delete that entry and re-enter it.   When you come to the screen that asks about uncommon situations, mark the box that says this is a lawsuit settlement and then answer the follow-up question.   This entry will not generate a Schedule C.  

 

lawsuit.png

 
 
 
 

 

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GM Legal Service

I followed your instructions and the program still want to generate a schedule c. Still lost. [PII removed]

DianeW777
Employee Tax Expert

GM Legal Service

If you receive a form 1099-MISC 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-MISC 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. If necessary also make sure to say it was not for back wages.

 

The amount will be reported as Miscellaneous income and will not be subject to self employment tax.

 

@dmallett48 

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