Solved: My son received 1099 MISC Box 3 amount for room & board costs at graduate seminary. Where do I put this amount and is it taxable?
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My son received 1099 MISC Box 3 amount for room & board costs at graduate seminary. Where do I put this amount and is it taxable?

 
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Level 15

My son received 1099 MISC Box 3 amount for room & board costs at graduate seminary. Where do I put this amount and is it taxable?

Since he is not a dependent, he will get his full $12K standard deduction, so it's not critical where it gets entered. 

The IRS considers anything in box 7 of 1099-MISC to be self employment income. TurboTax (TT) aggressively steers you in that direction, even when the amount is in box 3.

 That said, the key to getting TT to treat it as other income is to follow these steps:

 Enter the 1099-Misc

On the next screen Describe what the payment was for 

On the next screen select "none of these apply"

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2018" ONLY (Lying to TT to get it to do what you need does not constitute lying to the IRS)

On the next screen select No, it didn't involve intent to earn money

TT will put the amount on line 21 of form 1040 (Schedule 1) as other income


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Level 15

My son received 1099 MISC Box 3 amount for room & board costs at graduate seminary. Where do I put this amount and is it taxable?

Yes, it's taxable. Where do you put it is complicated. Is he your dependent? How much is the amount? Does he have other income; how much and what source?
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New Member

My son received 1099 MISC Box 3 amount for room & board costs at graduate seminary. Where do I put this amount and is it taxable?

12.7K is the amount.  He is not a dependent, has limited other earned income of 4K - thanks
Highlighted
Level 15

My son received 1099 MISC Box 3 amount for room & board costs at graduate seminary. Where do I put this amount and is it taxable?

Since he is not a dependent, he will get his full $12K standard deduction, so it's not critical where it gets entered. 

The IRS considers anything in box 7 of 1099-MISC to be self employment income. TurboTax (TT) aggressively steers you in that direction, even when the amount is in box 3.

 That said, the key to getting TT to treat it as other income is to follow these steps:

 Enter the 1099-Misc

On the next screen Describe what the payment was for 

On the next screen select "none of these apply"

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2018" ONLY (Lying to TT to get it to do what you need does not constitute lying to the IRS)

On the next screen select No, it didn't involve intent to earn money

TT will put the amount on line 21 of form 1040 (Schedule 1) as other income


View solution in original post

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