If you are sure the income is not taxable, you need to report the form 1099-MISC as income on your tax return, then enter an adjustment to Other Income as a negative amount to cancel it out.
- Go to the Wages and Income section of TurboTax
- Choose Less Common Income
- Choose Miscellaneous Income, 1099-A, 1099-C
- Choose Other reportable Income
- Enter a description for the adjustment and enter the amount as a negative number
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