How do I delete info added in self employment.

[hbcain]

I received a 1099-misc income for teaching a program related to my salaried job.  TurboTax placed it in self-employment. It should go into misc income.  I need to delete it from self employment.  How do I delete it?

[Carl]

That's easy to do. But first, are you confident the IRS won't consider it to be self-employment income? I ask, because the last thing you want is for this to come back and bite you 24-36 months after you file. Some things to consider:
 - Was the 1099-MISC issued to you by the same employer that issued your W-2? If not, then it "may" be considered SE income by the IRS.
 - Did you get paid for providing the same product or service in a prior year, and that pay was reported to you on a 1099-MISC? If yes, then the IRS "may" consider this SE income.
 - Do you foresee that you may be paid in 2017 for providing the same product or service, with the income reported to you on a 1099-MISC? If yes, then the IRS "may" consider it self employment income.

[hbcain]

Carl, I work for a State Treasury Department.  In 2016, I taught a 2 day class in banking.  I received a per diem allowance to offset hotel, meal and travel expenses. This generated a 1099-misc income issued by the State's Institute on Govt Policy.  When I entered on TurboTax that it was related to my job, a self employment section was created.  I would like to delete that section but the program isn't allowing me to do so.  Also, I would like to list the expenses that offset most of the per diem.  Thank you.

[Carl]

Thanks for clarifying everything. The last thing I want to do is provide someone information that comes back to bite them later, because the information I provided was incorrect since I didn't know the background. I'm assuming the income was reported in box 3 or 7 of the 1099-MISC. If so, you "should" find it in the SCH C section of the program. You basically just need to delete the entire SCH C first.

Select the Business tab, and if presented select the button for "I'll choose what to work on".
Next, elect to start/update Business Income & Expenses (SCH C).
If there's anything on that screen, click the DELETE button to the right of it, then YES to confirm the delete. Then continue working it through until you're return to the main listing under the Business tab.

The above gets rid of the business stuff. One more place to check for that 1099-MISC to make "sure" we've deleted it. It's the same place you'll be entering (or re-entering) the 1099-MISC so it's not treated as SE income.

Under the Personal tab select Personal Income (far left, just under the Personal tab).
If presented, click "I'll choose what to work on"
Scroll down to the "Other Common Income" section, and under that elect to start/update Income from Form 1099-MISC. If there's anything listed there, click the DELETE button to the right of it, then YES to confirm the delete. Work it through until you're returned to the main list under the Personal Income tab. That gets rid of the 1099-MISC, in case it was still there after deleting the SCH C earlier.

Now to enter the 1099-MISC so it's not treated like SE income. Some of the below may seem contradictory, but understand that your individual selections are not sent to the IRS. those selections are only used by the program so the program can determine if it's SE income or not. The only part of this sent to the IRS, is the reason why you received that income that was reported on a 1099-MISC. If your reason is valid (such as per-diem payment or reimbursement for qualified work-related expenses) then you're fine.

Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.

Enter the 1099-MISC exactly as printed, and then Continue.

Enter the reason you got this money – be it scholarship, bonus, per-diem payment, streaking butt naked across the 50 yard line of the super bowl, whatever. Then continue.

Select None of these apply, then Continue.

Select No, it didn’t involve work….. and Continue.

Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.

Select No, it didn’t involve an intent to earn money, then Continue.

Select NO, then Continue.

Click the DONE button, and that does it.

Nerxt, you'll offset the taxability of that income reported on the 1099-MISC, by claiming your qualified/allowed expenses under the Deductions & Credits tab in the Job Related Expenses section.

Whew! Hope I got you through this okay!