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.

CapB
New Member

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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:

https://ttlc.intuit.com/replies/3300011

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Thank you for the advice.  I followed this advice and it did move the income to line 21 of the 1040.  It made about a $300 difference in taxes.  However for some reason during smart check it is still asking me to make revisions on a schedule c for that stipend.  Do I need to change something else so this is no longer reported on a schedule C
fizz6kitty
Returning Member

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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?

PatriciaV
Expert Alumni

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@fizz6kitty

You must complete SmartCheck in order to e-file your return.

 

Before you run SmartCheck again, please follow these steps:

  1. Follow the instructions in this thread for deleting Schedule C. Be sure you delete any related forms that include "sch c" in the name.
  2. Delete the Form 1099-MISC that you entered (use the trashcan icon).
  3. 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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