If the income is in 1099-MISC box 3 and TurboTax is filling out a Schedule C, you must have entered it incorrectly or answered a question wrong.
Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported on Form 1040 line 21.
- Click the Federal Taxes tab.
- Click Wages & Income.
- Click "I'll choose what I work on" or "Jump to a full list."
- On the screen "Your 2016 Income Summary," scroll down to the section "1099-MISC and Other Common Income." Click the Start button for "Income from Form 1099-MISC."
- The next screen asks "Did you get a 1099-MISC?" Click Yes.
- On the next screen enter the information from the 1099-MISC form, then click Continue.
TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.
- "Describe the reason for this 1099-MISC." - It doesn't matter what you enter. Enter a short description such as "Reimbursement." Click Continue. You will see this description used in some of the subsequent questions.
- "Does one of these uncommon situations apply?" - Select the last choice, "None of these apply," and click Continue.
- "Did the Reimbursement involve work that's like your main job?" - Select No and click Continue.
- "How often did you get income for Reimbursement?" - "I got it in 2016" will already be checked. Don't check any of the other boxes. Just click Continue.
- "Did the Reimbursement involve an intent to earn money?" - Select No and click Continue.
This will report the income as Other income on Form 1040 line 21 with the description "Other Income from box 3 of 1099-Misc." It will not fill out a Schedule C.
