Business & farm

If the amount shown on Form 1099-MISC is part of the amount already recognized from the sale of the business in a prior year, you can enter the Form 1099-MISC in TurboTax, and then enter it again with a negative figure and description, so that it is accounted for on your return.

When you are signed into your TurboTax Account use the following steps to enter the income:

1. Click on Federal > Wages & Income.
2. Scroll down to the Other Common Income section. 
3. Click on the Start/Revisit box next Form 1099-MISC. 
4. On the screen Did you get a 1099-MISC?  click on the Yes button.
5. On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.

Where prompted, indicate that it did not involve an intent to earn money (so that it won't incorrectly apply self-employment tax).

Once you have entered the income you can use the following steps to enter it as a negative figure which will result in zero income being added to your other income.

1. Click on Federal > Wages & Income.
2. Scroll down to Less Common Income section.
3. Click on Start/Revisit box next to Miscellaneous Income.
4. Scroll to Other Reportable Income Click Start/Revisit.
5. Enter Description and negative amount (ex. -500).