Deductions & credits

Amend your 2020 return and include the 1099 as income and then subtract it out. Follow these steps in performing this action.

1. Log into Turbo Tax assuming you use Turbo Tax online
2. When you reach the landing page, scroll to the bottom where your tax returns and documents are.
3. Select 2020, and click on the option to amend and change return.
4. Answer the questions about why you are amending
5. Once you begin working in your return, your refund monitor will reset to 0. 
6. Go to federal>income and expenses>Other Common Income>
7. i assume it's a 1099 Misc. If so, select Form 1099-MISC>start
8. As you are filling in the information, be sure to check that your form has other information in Boxes 1-17. You will want to report if you paid federal or state tax on this, if applicable.
9. Finish out the interview. Make sure you answer the questions carefully relating to if this was a job. it was also not an intent to earn money.
10. Now since you have entered this as income, you may subtract it out by:
11. Go to federal>wages and income>less common income>show more
12. Go to Miscellaneous Income, 1099-A, 1099-C>start
13. Go to other reportable income>start
14. The second screen should be entitled Other Taxable Income
15. In the description, give reference to the 1099-MISC(or NEC) if that is the case, that these were sales proceeds that were already reported in you original return
16. Here enter the amount as -xxxx, which will simply negate the amount from the 1099 MISC. 
17.