@BTC198 wrote:
Hello, Is there a way to enter this same/similar situation on the current 2020 version of Turbo Tax.
On Schedule 1, line 8, I already entered 2 separate entries in the 1099-NEC (this is the form I received) section and they net out to $0 shown on the Schedule 1. But I want both amounts to show (positive being offset with negative) and a description of "Non-taxable compensation under IRC section 104(A)(2)".
So basically, is there a way to show 2 line items on Schedule 1, line 8? Something like this...
COMPANY NAME $XX,XXX
"NON-TAXABLE..." -$XX,XXX
TOTAL NETTING TO $0
I don't like the "negative entry" method in any case. If turbotax is netting the entry to zero for line 8, you would have to use the desktop version installed on your own computer, go to forms mode, and type the explanation in yourself.
Also be aware that the IRS will almost certainly send you a letter demanding you prepare a schedule SE and pay SE tax. It will be triggered by the 1099-NEC, because the IRS will assume that all 1099-NEC income is compensation for services performed. Anything you write in the tax form is unlikely to stop the automated assessment, assuming someone even reads your comments. You will need to respond with documents showing why this money is not compensation for working.
