Caught in a loop between 1099-MISC and 1099-K

[sciencemagic]

I am self-employed, and received a 1099-K.  After entering the information for my 1099-K, Turbotax 2023 won't let me get past 1099-MISC.  When I tell it I didn't receive one, it loops me to 1099-K Summary, and then back to 1099-MISC.  I was told on the phone with Intuit that this was a result of my using Turbotax Deluxe, and I should buy Turbotax Home & Business.  But this worked fine with Turbotax Deluxe 2022.  And if fact, if I open a new 2023 return, and DON'T put in a 1099-K, it still gets caught in the loop.

Some people say this is a software problem that was introduced in an update a couple of weeks ago.

Will this issue be fixed, or is Tubotax 2023 no longer supported?

Thank you.

[DoninGA]

This problem was caused by an update released on 09/12/24.  It has been reported and there is a possibility that there will be a fix with another update due out tomorrow, 09/26/24.

Additionally, the problem is also happening with the TurboTax Premier desktop edition as well as the Deluxe desktop edition.  Whomever told you that Self-Employment income is not supported in the Deluxe edition was totally wrong.  All the TurboTax desktop editions, Basic, Deluxe, Premier, Home & Business all support entry of self-employment income and expenses.

[BettieG]

Hi!  Thanks for your question.

As I understand it, you are using TurboTax Desktop Deluxe version.  If you are self-employed, in connection with which you received a Form 1099-K reporting at least part of your self-employment income, you will need to use the TurboTax Desktop Home & Business product if you want to also reflect/record any business-related expenses.  If you are, in fact, self-employed, you should be including all your self-employment income as well as deducting your ordinary and reasonably-related business expenses.  

To the extent, however, that you only want to report the income from the 1099-K (with no expenses), you may want to try deleting the 1099-K and re-entering it.  You may also want to try deleting the related worksheet(s)  (using the Forms mode) for both the 1099-K and 1099-MISC.  This article may be helpful to you:  How do I delete a tax form in TurboTax Desktop?

I hope this helps.

[DoninGA]

@sciencemagic @BettieG TurboTax website for a list of all forms supported by the TurboTax desktop editions - https://turbotax.intuit.com/personal-taxes/irs-forms/

[sciencemagic]

Thanks for the reply.  I can enter in my self-employed income and expenses just by going down to "Business Items," so that's not a problem.  The problem is that going through the "step by step" process, or choosing what I want to work on, the program hangs up at the point I indicated.  Since this did NOT happen with 2022 Deluxe (or previous years for that matter), it must be something that has changed.  I hope this will be rectified.

[sciencemagic]

@DoninGA   It was the Intuit phone support people that told me I needed Home & Business.  But I've never had to have that edition before, and for over a decade have been able to enter in my self-employment just fine.  I hope it IS just a glitch that will be fixed, but my guess is it may not be fixed until 2024 Turbotax is released.

[MJ799]

I am trying to enter income information for Schedule C. TT asks about receipt of 1099 NEC. I answer yes, and enter the appropriate info. TT next asks about  receiving a 1099 Misc. I answer no. TT then asks about 1099 K. I answer no. TT then returns to the 1099 Misc question still showing my "no" answer. I click continue, and TT goes to the 1099 K question. I answer no, and TT goes to the 1099 Misc question and so on. I am stuck in this loop and cannot continue with any other Schedule C information. Any help is appreciated. (I have used TT Deluxe for years for my Schedule C.)

[rjs]

This is a known bug in a recent update. The bug has been reported to TurboTax.

[MJ799]

Thank you. I'll be patient for a few days!

[sciencemagic]

I've talked multiple times with TT on the phone.  They can't figure it out.  Maybe it will be corrected for 2023, maybe not.

In the meantime, I've heard that if you just hit the "back" button when you are on 1099-MISC or 1099-K, that lets you continue.  What I did was to switch to "forms" in the top right, and then just fill out the Schedule C form manually.  After all, that's the way I used to do it before TT was invented!  Still think this needs to be fixed, but at least there is a work around.

[pgershon1]

Any update on this as I am unable to complete taxes.  Same issue.  Stuck in loop between 1099-K and 1099-misc (I have no 1099-k, only 1099-NEC and 1099-misc).  I cannot get to business expenses.

[DoninGA · Accepted solution]

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@pgershon1 wrote:

Any update on this as I am unable to complete taxes.  Same issue.  Stuck in loop between 1099-K and 1099-misc (I have no 1099-k, only 1099-NEC and 1099-misc).  I cannot get to business expenses.

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I am using the 2023 Premier Edition desktop for Windows and found this workaround.

When the program asks if you received a Form 1099-K answer Yes.  On the 1099-K enter any name for the Payer, any 9 digits for the Payer ID and then enter $1 in box 1a.  Click on Continue and click on Done.

This will take you back to the Form 1099-MISC question and  answer NO.  Click on Continue. 

You will now be back at the Form 1099-K Summary screen.  Click on the BACK button.  You can now continue the interview for the Schedule C.

[pgershon1]

That worked.  Thanks so much