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Get your taxes done using TurboTax
If a Schedule C continues to populate when you are inputting your 1099-MISC, it is important that you answer the questions that follow the entry screen for the 1099-MISC. If answered correctly, you will also be able to have this income flow to Other Income will not go to self-employment income.
Please follow the instructions below:
- Open or continue your return, if you're not already in it.
- Search for 1099-misc and select the Jump-to link.
- Click Edit your 1099-MISC.
- Continue past the amounts already entered. Make sure you enter the amount in Box 3 and the amount in Box 10.
- On the page Enter Taxable Attorney Fees, it is likely that the amount in Box 10 was the attorney fee. In that case, enter $0. Payments made to an attorney consist of attorney's fees plus other expenses (such as costs or settlement fees). If you cannot determine the amount of the attorney's fees or the other expenses, the entire amount is considered Gross attorney's fees. Generally, legal fees are not tax deductible and therefore, would be added to your Box 3 amount.
- Describe the reason for this 1099-MISC.
- Answer This Money Was From a Lawsuit Settlement on the screen Does one of these uncommon situations apply?
- Answer No, it was not back wages for the next question.
- Answer No for the question Did you have another 1099-MISC?
- Your 1099-MISC will flow to Other Income.
Next, please make sure to delete any Schedule C or associated self-employment forms in your return.
- Search for Schedule C with the magnifying glass tool on the top of the page.
- Select the Jump to Schedule C link in the search results.
- Select No to the question Did you have any self-employment income or expenses?
- Click on Tools.
- Click on Delete a Form.
- Scroll down to your forms and look for forms you need to remove and click Delete.
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March 20, 2021
3:58 PM