Either the TurboTax screens are not clear (and they are clear to me) or there's a serious comprehension issue here indicating that our education system is failing us.
If the income is reported to you in box 1, then you are a landlord who owns rental property, or a property manager paid to manage rental property owned by others. Period.
If the income is reported to you in box 2, then you are the owner of royalty rights and received payment for your royalty rights. For both box 1 and box 2 the income is reported on SCH E.
If you do not own or manage rental property, or do not own royalty rights, then the 1099-MISC is wrong. You need to contact the issuer and have them issue you a corrected 1099-MISC with the amount reported on box 3.
It's also possible that the income reported in box 1 was reported to you by mistake, when it should have been reported to the owner/landlord of the property. Check with the issuer on that. Income in box 3 should be reported to you the student. Income in box 1 should be reported to the landlord/property owner.
Reporting 1099-MISC (box 3 or box 7) that is not self-employment income
Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.
Enter the 1099-MISC exactly as printed, and then Continue.
Enter the reason you got this money – be it scholarship, bonus, streaking butt naked across the 50 yard line of the super bowl, whatever. Then continue.
Select None of these apply, then Continue.
Select No, it didn’t involve work….. and Continue.
Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.
Select No, it didn’t involve an intent to earn money, then Continue.
Select NO, then Continue.
Click the DONE button, and that does it.
