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Level 1

I receive monies as a beneficiary and receive a 1099 box 3. I am not in business or self employed but it is defaulting to schedule c

 
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Level 1

I receive monies as a beneficiary and receive a 1099 box 3. I am not in business or self employed but it is defaulting to schedule c

Yes, the amount reported to you, as a beneficiary, on Form 1099-MISC, Box 3, is reported as Other Income on Form 1040, Line 21.  It is not considered self employment income so no Schedule C is required for reporting.  

Often, 1099-MISC income reported in Box 3 is for other income (not received for services) such as those received as a beneficiary of a deceased employee, prizes, awards, taxable damages, Indian gaming profits, or payments from a former employer because you are serving in the Armed Forces or the National Guard for a period of 30 or fewer days.. 

To correctly  report  in TurboTax follow these steps:

  • Sign in to your TurboTax account
  • Click on Take me to my tax return (orange button) 
  • Click Federal Taxes tab
  • Click on Wages & Income Tab
  • Scroll down to Other Common Income
  • Click Show More and click Start to right of Form 1099-MISC
  • Enter amount from your 1099-MISC into Box 3

Once you delete the Form 1099-MISC entry (if you haven't already) from the Self Employment section under Federal Taxes, Wages & Income the Schedule C will be removed.

1 Reply
Level 1

I receive monies as a beneficiary and receive a 1099 box 3. I am not in business or self employed but it is defaulting to schedule c

Yes, the amount reported to you, as a beneficiary, on Form 1099-MISC, Box 3, is reported as Other Income on Form 1040, Line 21.  It is not considered self employment income so no Schedule C is required for reporting.  

Often, 1099-MISC income reported in Box 3 is for other income (not received for services) such as those received as a beneficiary of a deceased employee, prizes, awards, taxable damages, Indian gaming profits, or payments from a former employer because you are serving in the Armed Forces or the National Guard for a period of 30 or fewer days.. 

To correctly  report  in TurboTax follow these steps:

  • Sign in to your TurboTax account
  • Click on Take me to my tax return (orange button) 
  • Click Federal Taxes tab
  • Click on Wages & Income Tab
  • Scroll down to Other Common Income
  • Click Show More and click Start to right of Form 1099-MISC
  • Enter amount from your 1099-MISC into Box 3

Once you delete the Form 1099-MISC entry (if you haven't already) from the Self Employment section under Federal Taxes, Wages & Income the Schedule C will be removed.