Another way to handle this reporting is in the Less Common Situations. To enter in TurboTax, follow these steps:
To declare this income as Other Common Income from Form 1099-MISC:
- From the left menu, select Federal
- Wages & Income, Scroll down to Other Common Income
- Click Start by 1099-MISC
- On the Does one of these uncommon situations apply? Select Taxpayer's employer reported this extra money on a 1099-MISC but it should have been reported on a W-2 and continue through the rest of the entry. This will send Form 8919 to the IRS, since this income was mishandled.
Secondly, in this scenario, to be in compliance with the IRS and report the Form 1099-MISC you received, you need to report it as "an in and out." Do this:
- From the left menu, select Federal
- Wages & Income scroll all the way down to Less Common Income and click Show More
- Select the last listed option for Miscellaneous Income 1099-A, 1099-C, click Start
- Next, select the last listed option Other Reportable Income
- Did you receive any other taxable income, click yes
- Other Taxable Income: Enter your description and the amount and click Continue and Done. Disregard the comment "Do not enter income from Form 1099-MISC here" because this is meant to guide taxpayers reporting typical 1099-MISC income. Your case is less common and this is how you can report it in TurboTax
- For the second description, write what @Critter suggested earlier.
If this is your scenario, the instructions above will prevent the overstated income from being included in 2019 income
If you did have expenses that were reimbursed, those expenses can offset the income, as @Hal_Al mentioned
