I use TurboTax Premier on the desktop so virtually none of the screens you mention are there. For instance, there is no place to enter a description saying Return of Prize. Where I enter the 1099-Misc, there's a box to click that says Winnings (Prizes, etc.). However, if I prepare another 1099-Misc that is a negative amount to offset my incorrect 1099, and I click on Winnings (Prizes, etc.) again, then my Sch 1 of the 1040 doesn't show the Misc Income at all. That would be OK from a dollar perspective, as the amounts completely offset, except then the IRS would not see that I am reporting the 1099 in the first place, and the matching program will flag it and I'd be in trouble.
I can check "Other Income" on the 1099-Misc and enter a negative amount. My Sch 1 then shows the original $2K prize, and then further down a negative amount without explanation. I would think that could be a flag. Any advice would be appreciated. Thanks.
