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Get your taxes done using TurboTax
To correctly enter the 1099-MISC so that it does not prompt a Schedule C, take the following steps:
- In your open Federal return, choose the tab for Wages & Income
- Tab through or scroll down to Other Common Income (you may have to choose Add more income and then See more income to view this topic) and then Show More
- Start/Revisit Form 1099-MISC
- Edit the 1099-MISC if you already entered it, or Add it now and enter the information on the form, then Continue.
- On the screen Describe the reason for this 1099-MISC enter your description.
- On the screen Does one of these uncommon situations apply? choose None of these apply.
- On the screen Did the [Description] involve work that's like [Name's] main job? answer No.
- On the next screen, choose the year you received the money. (In this case, 2018.)
- On the screen Did the [Description] involve an intent to earn money? choose No and complete the interview.
This will place the 1099-MISC on Form 1040, Schedule 1, Line 21.
To reverse the income reporting because it is non-taxable:
- In your open Federal return, choose the tab for Wages & Income
- Scroll down to Less Common Income and Show more
- Start/Revisit Miscellaneous Income and choose Other reportable income
- Say Yes to continue to the screen "Other Taxable Income". Enter your description and the amount as a negative number.
A corresponding entry will appear on Form 1040, Schedule 1, Line 21 of your return. You may not see it, since these two entries will amount to zero, but it's there.
‎June 3, 2019
5:00 PM