For any who read this thread in the future ... the "free" stock you got from Robinhood has a value and the 1099-misc reports that value. Now the 1099 needs to be reported as income and this becomes the basis of the stock so when you sell it you do not pay taxes on that amount twice. This is no different in concept than if you invested your taxable dividend in new stock. Then if/when you sell the "free" stock you have a basis in it ... the 1099-B may already have the correct amount and if they do not you can make a correction.
To enter this 1099-misc for the free stock gifted to you ...
Here's how to enter it in TurboTax.
- Click the Federal Taxes tab ( Personal in the Home & Business version)
- Click Wages & Income. (Personal income in the H & B version)
- On the screen "Your 2019 Income Summary," scroll all the way down to the last section, "Less Common Income."
- Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
- On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."
- The next screen asks, "Did you receive any other taxable income." Click Yes.
- On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.
- On the next screen click Done.
The income will be reported on Sch 1 line 8 with the description that you entered.
