I have a 1099-MISC for student loan reimbursement from work, the Home & Business generates a Sch C, my tax preparer says it belongs on 1040 Line 21. How do I edit this?

[jcbhartman]

Additionally, previous tax years Turbo Tax placed this 1099-MISC on 1040 Line 21 (other income) however the Home and Business software wont allow me to. Can I manually edit this?

[AnthonyC · Accepted solution]

When you enter the Form 1099-MISC you have to make sure you answer the follow-up questions in such a manner that you don't indicate this is self-employment income.  You will want to say No to any intent to earn money etc and No to work similar as your job and not recurring.

However, alternatively, you can directly add something to Line 21 using the following steps (just make sure to delete out the Form 1099-MISC if you have already entered it) -

• Click on Federal Taxes (may say Personal if using desktop Home and Business)
• Select the Income tab
• When the page opens, click "Jump to full list” if it is not displaying the full list of income items.
• Scroll down to the very last item, Less Common Income and click “Show More” to expand the list
• Select "Miscellaneous Income, 1099-A, 1099-C”
• Select “Other Reportable Income” - the very last item (There is another “other” category that is the first choice - do not use that one)
• Enter the income amount and a description and this will place the income on Line 21 of Form 1040 (Income from 1099-MISC)