The income should not be reported under Schedule C. Use the entry below to record the income and the reversal of income.
IRS Notice 2014-7 payments are not taxable and not reportable. But since you have received a 1099, you want to acknowledge to the IRS that you are in receipt of the form. You want to record the 1099 income, then immediately reverse the entry in the tax return. Follow these steps.
- Select Federal from the left side menu.
- Click on Wages & Income.
- Scroll down to Less Common Income. Click Show more.
- Click Start / Revisit to the right of Miscellaneous income….
- Click Start / Revisit to the right of Other reportable income.
- At the screen Other Taxable Income enter ‘IRS Notice 2014-7 payments’.
- At the screen Other Miscellaneous Income Summary, click Add another miscellaneous item.
- Enter the same description but enter the payment amount as a negative number.
View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.
The entries will be reported on the worksheets within your tax return.
@cjmz96
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
