1099-MISC income is preventing TTax e-filing

enigma_dawg · ‎July 7, 2020

My wife and I are retired for about two years now. Last year she received a payment as the result of a class-action suit against her former employer. I've entered the 1099-MISC information into TurboTax but when I try to e-file I receive the following message:

"It looks like you have a tax situation in your federal return that makes it ineligible for e-filing, according to IRS rules. Here are the details: Your Earned Income Tax Credit (EITC) is based on non-documented earned income."

1) I cannot find anything on the IRS website regarding this rule. Is there a link where I can read about this?

2) Having entered the information from a 1099-MISC form why is TTax calling it "non-documented earned income"? By definition isn't a 1099-MISC considered a federal document?

3) Why is TTax categorizing the payment as EITC?

TIA for your assistance!

Texas Roger · ‎July 8, 2020

Perhaps you entered the 1099-MISC in the wrong place. It can't be entered in the W-2 section. If that is where you entered it, you must delete it from there. To find the correct place to enter it, type other income in the search box and click on jump to other income in the drop down box. Answer the questions about the 1099-MISC that would result in it being treated as unearned income.

enigma_dawg · ‎July 9, 2020

Thank you for your prompt reply, much appreciated. Unfortunately this is not a solution to my issue.

As prompted by TTax I had already entered my wife's 1099-MISC information under the "1099-MISC and Other Common Income" section, not under the "Wages and Salaries" (i.e. form W-2) section.

I still don't understand why I cannot e-file our return as we were hoping to save on paper, printer ink, and postage. Nevertheless, thanks again for your help.

Texas Roger · ‎July 10, 2020

You can try to see if TurboTax customer support can help you: https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

1099-MISC income is preventing TTax e-filing

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