ToddL99
Expert Alumni

Get your taxes done using TurboTax

There is more than one way to enter a 1099-MISC, and the following steps will help you avoid getting "pushed" into the business income category because of your 1099-MISC.

 
If the 1099-MISC reports income that is not related to self-employment, enter the information as follows in the 1099-MISC interview:  

  • Type "1099 misc" in the search window 

  • Click on "jump to 1099 misc" 

  • Enter the information from your Form 1099-MISC, and click on Continue 

  • Enter a description (UAW Legal Benefit?) and click on Continue 

  • On the screen with "Does one of these uncommon situations apply?", indicate "None of these apply" 

  • Answer "No..." to "Did the "UAW Legal Benefit" involve work that's like your main job?" (you did not get this benefit from 'working', you got it as a consequence of union membership)

  • Answer "I got it in 2020" when asked "How often did you get income for "UAW Legal Benefit" ?"  (yes, you got it before and will get it again, but this is how you must answer the question to avoid looking like you have a business)

  • Answer "No, it didn't involve an intent to earn money." 

 

The amount will be reported on line 8 of Schedule 1 (Form 1040).