Hello,
For the 2021 tax year I received a 1099-MISC on a consolidated 1099 statement from TD Ameritrade. That 1099-MISC consisted of entries on lines 2 and 3.
If the 1099-MISC only contained line 3, the procedure above (described by Irene3 and others) works fine to put that amount on Schedule 1 and not create the Schedule C or SE.
The issue is that the Royalty income in line 2 asks its own set of questions. In particular it wants me to classify that income as either "Investment income from property you own" or "Royalty income from your business, including artist royalties or operating natural resource business (schedule C)" but neither applies. If I pick "Investment income from property you own" a new Schedule E Worksheet is created and the other option will create a Schedule C. Neither seems is appropriate as the Royalty income is from an investment in a publicly traded Trust.
The new Schedule E Worksheet may not be a big issue if it is not filed as part of the return. But if it is, there is data there that is a bit strange. I was forced to populate the "Property description" field on the worksheet. Oddly TT added the description of the income required in the step-by-step interview "Investment Income" to the "Location (street address)" field in that worksheet. That worksheet also required me to answer the question "Did you make any payments that would require you to file Form(s) 1099?". All of this seems crazy as this royalty income is from an investment not a property that I directly own.
So, the question is, how to correctly enter this in TurboTax?
Thanks for input on this!
