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I entered $2500 stipend in 1099-MISC field in wages. I ran smart check & it shows I need to check the link to schedule C. I check box & my refund goes down $1053. Help??
This is strange because everything works smooth until I get to smart check. Once I am asked to choose which schedule for box 3 on the 1099-MISC form, the refund goes down over $1000. That would seem that I am paying 42% tax on that stipend. It seems that I must be doing something wrong. Are there different forms that I have messed up on? I have read the steps on how to properly input a 1099-MISC. When I delete the 1099-MISC the refund goes back up. When I re-enter the 1099-MISC the refund does not change until I get to the Smart Check portion of Turbo Tax. I am happy to pay the taxes if that is what I owe, I just want to check and see if I have done something wrong.
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Get your taxes done using TurboTax
If you received a Form 1099-MISC, (stipend) that was not from self-employment activities or the main service of your job, report it on Form 1040, line 21.
To edit a Form 1099-MISC to Form 1040, line 21:
1. Sign in to TurboTax.
2. Select: Federal Taxes>Wages & Income>Other Common Income>Form 1099-MISC then press "Revisit"
3. Continue through the Interview questions and editing your Form 1099-MISC information.
4. Be sure to select the following answers:
- "None of these apply" on the "Does one of these uncommon situations apply?" page.
- "No" on the "Did {your description} involve work like (your name} main job?" page.
To delete a Schedule C business (new in the current year):
- Sign in to TurboTax>Take me to my return>Tax Tools> Tools>Delete a form.
- Select Delete next to the form/schedule/worksheet and follow the onscreen instructions.
To correctly delete a prior-year Schedule C business that was transferred from last year's return, see the instructions below:
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I am having the exact same issue. My MISC income is for graduate student stipend. When it tries to put on Schedule C as a Business my money owed jumps drastically. A quick google search says I would not need to count this as a business so I delete the Schedule C income (that it duplicates over), but then the Smart Check keeps asking me which Schedule C form to use? Should I just not do the smartcheck?
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You must complete SmartCheck in order to e-file your return.
Before you run SmartCheck again, please follow these steps:
- Follow the instructions in this thread for deleting Schedule C. Be sure you delete any related forms that include "sch c" in the name.
- Delete the Form 1099-MISC that you entered (use the trashcan icon).
- Re-enter your stipend income and be sure you indicate that it was:
1) not related to your main job
2) one-time income
3) not an intent to make money.
Those three criteria will report the stipend correctly without generating Schedule C.
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