What does "a link to schedule c should not be linked when the MWP qualifying as difficulty of care payments exclusion box has been checked" mean?

[DawnC]

TurboTax is working to resolve the issue.   If you would rather wait until it is fixed, you can sign up for notifications through this link.   If the income is from self-employment, it all goes to line 1 of Schedule C (1099-MISC, 1099-NEC, and other/general business income).   

If your income is not from self-employment (most 1099-MISCs are not), it should not be linked to any Schedule C, and therefore, you should not be getting this error.   If your 1099-MISC is not from self-employment and you get this error, you need to delete the 1099-MISC and re-enter it make sure to specify the correct reason you received the form.  Otherwise, it will go to Schedule C and you will pay self-employment tax on income that you should not be paying SE tax on.  

Your income is self-employment, so it should be on line 1 of Schedule C.  @DanTheMan 

[tp616]

HI AliciaP1

I'm facing the same error when adding self employment income from 1099-MISC, with income in box 3.

I purchase Turbo Tax 2022 Home and Business CD.

I followed your instructions but they are not working in desk top application.

Any advise how to fix this problem on desk top PC?

Thanks in advance.

[jgshnd]

I hope TT will fix the error and frustration it has created for a bunch of people soon. Like others, I am reporting amounts in Box 3 from two 1099-MISC forms I received. This is for the business I engage in and should properly be added to Schedule C. Very simple.  As others have said, we shouldn’t have to fudge and change the 1099 MISC to NEC just to get TT to accept it. That would be inaccurate.  The actual solution is for TT to fix this obvious problem to its program that many people have been frustrated by. ASAP!

[JamesG1]

Report the 1099-MISC within the self-employment activity if the income is related to the self-employment activity.

• Select Business at the top of the screen.  Continue.
• Select I'll choose what I work on.
• Click Start / Update to the right of Business Income and Expenses.
• Click Start / Update to the right of Business Income.

If the 1099-MISC is not self-employment income, follow the steps below.

In TurboTax CD/Download Home & Business,

• Select Personal at the top of the screen.  Continue.
• Select I'll choose what I work on.
• Scroll down to Other Common Income.  
• Click Start to the right of Income from Form 1099-MISC.
• Did you get a 1099-MISC?  Click Yes.
• Enter the information from the 1099-MISC.  Continue.
• Enter the reason for the 1099-MISC income.  Continue.
• Select at option at the screen Does one of these uncommon situations apply?
• Select 'No' at the screen Did the income involve work.
• Select 'No' at the screen Did the income involve an intent to earn money?

The entry will be reported:

• on line 8z of Schedule 1 of the Federal 1040 tax return, and 
• on line 8 of the Federal 1040 tax return.

@tp616 

[TorinoJuv]

I got the same error when I went to file. I got a 1099-MISC for New York State Payed Family Leave. It wants me to file it almost as if I have my own business, but obviously this is not a business. Should 1099-MISC be linked to schedule C and declared as self-employment income even though Im not self employed? Is there a way around this error message for this case?

[DanTheMan]

I'm not sure what line or schedule this income from self-employment should go on.  That's why I buy TurboTax.  It should probably have come on a 1099-NEC like my other similar income, but it didn't.  C'mon, TT.

[AliciaP1]

No, if the income is not from self-employment do not report it as such.  Also, you are not required to report self-employment income by a specific form.  In both instances, you just need to be reporting your income in FULL on your return.

To enter your self-employment income:

In TurboTax Online:

1. Open or continue your return in TurboTax
2. Search for self employed income (use this exact phrase, don't add a hyphen) and select the Jump to link at the top of the search results
3. Answer Yes on the Did you have any self-employment income or expenses? screen
   • If you land on the Your 2022 self-employed work summary page, select Review next to the work you're adding income for
4. Answer the questions on the following screens until you arrive at Let's enter the income for your work
5. Scroll down to the Income section and click Add income for this work
6. Choose Other self-employed income and Continue

In TurboTax Home & Business:

1. Select Business at the top of the screen.  Continue
2. Select I'll choose what I work on
3. Click Start / Update to the right of Business Income and Expenses
4. Click Start / Update to the right of Business Income

To enter personal income:

In TurboTax Online or CD/Download:

1. Open or continue your return
2. Select the magnifying glass and search for 1099-misc. Select the Jump-to link
3. Answer Yes to Did you get a 1099-MISC?
   • If you already entered a 1099-MISC, you'll be on the 1099-MISC Summary screen, in which case you'll select Add Another 1099-MISC
4. Enter the info from your form into the corresponding boxes
   • If you need to enter boxes 4–6 or 8–17, check My form has other info in boxes 1–17 to expand the form
5. Continue answering the following questions until you get to the Did the bonus involve work that's like your main job? screen and answer No
6. Continue and answer I got it in 2022 on the How often did you get income for bonus? screen
7. Continue and answer No on the Did the bonus involve an intent to earn money? screen and Continue
8. If you have another 1099-MISC you can enter it or answer No and Continue
9. Proceed entering/reviewing your return

@TorinoJuv 

@DanTheMan 

[Samurai1001]

All due respect, I think everybody gets how to enter a Misc 1099 Form if it is related to self employment. The problem is for those that have correctly entered it as such, we are getting the error message relating to MWP which refers to the "Medicaid Waiver Payments" box in Box 3. The specific problem is TT is processing it as if we have clicked that box even though we haven't, which is leading to the error message. TT needs to fix the error, which they have indicated they will do in their next round of edits (according to the link previously provided by Dawn C).

Link here:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/schedule-c/getting-error-1099-misc/L5vRa...

[tp616]

Thanks for the detail instructions from both of you, but it is still getting error when I report 1099-MISC within the self-employment "Business" activity and Schedule C.

It is working fine , without errors, if report 1099-MISC with not self-employment income taking "Personal" input.

I think at this moment  only we can do is to wait for TT to fix the problem. I'm not sure how appropriate is to report incomes from 1099-MISC to 1099-NEC.  I will wait TT to fix the program In TurboTax CD/Download Home & Business.

Thanks.

@JamesG1

@AliciaP1 

[tp616]

Maybe someone of you got the email from Turbo Tax Help Team, but I'd like to share the good news that the problem is fixed. Here is the email I received today:

Hello,

There’s an update on the TurboTax help article you’re following: Error message for Form 1099-Misc with other income linked to Schedule C

We’re happy to inform you that we’ve updated TurboTax and resolved the issue you experienced

If you’re using TurboTax Online, it’s been updated automatically. Just sign in and you can continue working.

If you’re using the TurboTax CD/Download Software, download and install the latest update. You can do this through the prompt when you launch the software or by following

these instructions.

After updating please go through your 1099MISC again.

If you’re still having trouble or there’s anything else we can help you with, feel free to give us a call.

Thanks for your patience,

The TurboTax Help Team

[Samurai1001]

Thank you tp for posting the update. It's working for me now as well.

[DanTheMan]

Exactly, and well said.  We're not looking for a workaround, to include entering the data as if it came on a form different than what we actually got.  We're looking for TT to fix their incorrect error flagging that's showing in the Check.

Which apparently they have.