Solved: Ordinarily 1099-MISC box 7 non-employee compensati...
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dbullock
New Member

If I received a 1099Misc for a professional award in Box 7 why does it transfer to the Business section and how do I remove the schedule C that it wants me to create?

I can't figure out how to include my award money in the 1099Misc section without it transferring down to the business section. I have removed and re-entered several times and it never asks me questions about whether the income is from a business or not. It seems some have suggested to remove the Schedule C, but I don't know how to do that. Please help. 

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PaulaM
Employee Tax Expert

If I received a 1099Misc for a professional award in Box 7 why does it transfer to the Business section and how do I remove the schedule C that it wants me to create?

Ordinarily 1099-MISC box 7 non-employee compensation is considered self-employment income and entered on a schedule C. 

However, the 1099-MISC form instructions say 'If you are not an employee but the amount in this box is not SE income (for example, it is income from a sporadic activity or a hobby), report it on Form 1040, line 21.

Select Less Common Income, Miscellaneous Income. Then select Other Reportable Income and enter the description and amount. Enter something like 'Professional award reported in box 7' or something similar.

You will see a warning not to enter a 1099-MISC. That is because it is usually self-employment income. But in your case, this is where it belongs. Delete the 1099-MISC if you have entered it elsewhere.

https://www.irs.gov/pub/irs-pdf/f1099msc.pdf

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3 Replies
PaulaM
Employee Tax Expert

If I received a 1099Misc for a professional award in Box 7 why does it transfer to the Business section and how do I remove the schedule C that it wants me to create?

Ordinarily 1099-MISC box 7 non-employee compensation is considered self-employment income and entered on a schedule C. 

However, the 1099-MISC form instructions say 'If you are not an employee but the amount in this box is not SE income (for example, it is income from a sporadic activity or a hobby), report it on Form 1040, line 21.

Select Less Common Income, Miscellaneous Income. Then select Other Reportable Income and enter the description and amount. Enter something like 'Professional award reported in box 7' or something similar.

You will see a warning not to enter a 1099-MISC. That is because it is usually self-employment income. But in your case, this is where it belongs. Delete the 1099-MISC if you have entered it elsewhere.

https://www.irs.gov/pub/irs-pdf/f1099msc.pdf

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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dbullock
New Member

If I received a 1099Misc for a professional award in Box 7 why does it transfer to the Business section and how do I remove the schedule C that it wants me to create?

Great Instructions. Thank you very much!!!!
PaulaM
Employee Tax Expert

If I received a 1099Misc for a professional award in Box 7 why does it transfer to the Business section and how do I remove the schedule C that it wants me to create?

You are welcome 🙂
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**Mark the post that answers your question by clicking on "Mark as Best Answer"
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