Hal_Al
Level 15

Get your taxes done using TurboTax

You need to explain the circumstances of getting this 1099-misc. Who gave you the gift cards and why? Would did you do for them*.

The IRS considers anything in box 7 of 1099-MISC to be self employment income. TurboTax (TT) aggressively steers you in that direction. If you try reporting box 7 income as anything else, you chances of hearing from the IRS are very high.

 

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 2016" ONLY

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 as other income

 See http://www.journalofaccountancy.com/Issues/2009/Jul/20091639.htm

*You say the Gift cards were received because of some online training. that usually means you were being trained to perform some service for them. Just because you didn't go any further, with them, doesn't necessarily mean it isn't self employment income. But, it may qualify for the "one time gig" exception.

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