JohnB5677
Expert Alumni

Get your taxes done using TurboTax

You can use this process to post the 1099-MISC

You are not self-employed, but TurboTax thinks you are because of the way you entered it on your return.

  • Wages & Income
  • Scroll to Other Common Income
  • Select Income from a 1099-MISC
  • Post your information from the form [Continue]
  • Describe the reason for this 1099-MISC
  • Post XXXX
  • Does one of these uncommon situations apply?
  • Select None of the above
  • Did the XXXX involve work that's like your main job?
  • No
  • How often did you get income for XXXX?
  • Check Got it in 2021
  • Did the XXXX involve an intent to earn money?
  • Answer No

If you do not follow this posting procedure it will result in self-employment.  You would also have to pay 15.3% in self-employment tax (Social Security & Medicare).


2nd Question.  Yes, you will correct it on the 1099-B.  On the input screen for each currency, there is a check block for My Cost Basis Is Incorrect.  Use the cost basis as posted from the 1099-MISC.

 

3rd Question. No, not if you do it right.  It is frequent that the cost basis has to be changed.  Simply keep a note with your taxes explaining what you did.  Keep it available if the IRS should question it.  They probably won't

 

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