I receive a 1099 misc from my electric utility as payment for solar energy generation. It is not a Schedule C activity but Turbo Tax wants to treat it as a business.

[nick22204]

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?

[NicoleU]

In this case, you will need to do the following:

• Click Federal Taxes
  
• Look for Other Common Income (click Show more)
• Form 1099-Misc, click Start/Update
• Did you get a 1099-Misc?, click Yes
• You will fill it out your accordingly
  
• Describe the reason
  
• Does one of these uncommon situations apply? None of these apply
• Did the __involve work that's like your main job? No, it didn't work like my main job
• How often did you get income for ___? (If this will occur more than one time, then it will be treated as Schedule C business income)
  
• Did the ___involve an intent to earn money? No, it didn't involve an intent to earn money.
  

[Thinker55]

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!

[JeffreyR77]

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.

[Kapkilo78]

I had the same issue. I have a solar electricity system to even out my electricity from utility and what my panels produced. Sometimes, we produce more than we use, and the electricity pays us once a year for the excess and sends us a 1099-MISC with block 3 filled. No other fields are checked or have entry. 

I went through the whole process of entering the 1099-MISC but it was the last question that triggered creation of SCHEDULE-C. So, if you are receiving 1099-MISC, don't check the last box where it asks, "Name intends to get this in 202X."

Took 3 hours to get the answer, so by the time a TT Expert called back, I already had the answer.