I provide no services and am not registered as a business, but Turbo Tax wants to complete a Schedule C for 1099 Misc income listed in Box 3. How do I avoid that?
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In this case, you will need to do the following:
The final question in this response does not appear in TurboTax 2020 Home & Business. There is also a checkbox that says 'Stephen intends to get this in 2021' -- and I do, as wse have a 15 year contract. TurboTax wants me to create a Schedule C business. Help!
You have a pair of options. One is do not check the box that you intend to get the payment in 2021.
That will end the perpetuity nature of the payments and should end the Schedule C connection.
The other option is to delete the Form 1099-MISC and enter the income as Less Common Income Income, Other Taxable Income.
The first option is preferable; however the requirement is to report the income. The income is taxable and not subject to self-employment tax. Both options will achieve this objective.
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