Hi Amy,
And anyone who has a similar problem, as I did. I have a better solution, if you have a cooperative property manager.
All money from tenants, be it rent, utilities, late fees, payment for damages or deductions from security deposits to pay for damages are (or should be) considered "rental income" by the IRS. If that's all you are receiving from your property, you should not show anything in Box 3 of your 1099-MISC.
I had an amount in box 3 of my 1099-MISC that represented a utility charge for water and garbage. I asked my property manager to look into this, and they found out that in fact, that should have gone into box 1. They issued me a corrected 1099-MISC, and saved me taxes on "Self Employment," which is what TurboTax wanted to do.
So ask your property manager to issue a corrected 1099-MISC if they do this. They work for you, after all, and they should have no problem doing so. Just be sure to keep both copies (corrected and original).
