ColeenD3
Expert Alumni

Investors & landlords

Another option is to include it as other income. This will avoid the rental section problem. Be sure to reference Box 1, 1099-MIsc so the IRS can match it.

 

Next, back it out again as negative number, referencing the 15 day rule.

 

Click on Federal Taxes at the top of the screen;

At the bottom of Your Income box pick the option in blue to help me add other income, then jump to full list;

Scroll down the page to the last section titled: Less common Income and click show more;

Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;

Scroll down to the last option titled Other reportable income and select start or edit;

When it asks, "Any other reportable income?" say yes then you will make two entries:

Your first entry description would be  Box 1, 1099

Next you click "Add Another Miscellaneous Income Item," and enter this description: Rental less than 15 day excludable income and enter the 1099 Box 1 amount as a Negative (-) number. 

This both shows and explains removing the W-2 income, placing a zero on the other income line of your Form 1040. 

If your W-2 has federal or state taxes withheld, you can enter these amounts in the Deductions & Credits section under Other Income Taxes as Withholding not already entered on 1099.