Yes, this may trigger an IRS inquiry but to negate the income you mention, this is the only way to negate the income in Turbo Tax. Just to be clear, here is how to enter.
Once you entered the 1099 MISC, here is how to negate the income.
- log into your account
- Select Wages and income
- Less Common income
- Miscellaneous Income, 1099-A, 1099>start
- Scroll to the bottom of the page to Other Reportable Income
- Other taxable income, answer yes
- Then give a brief description of the income and the amount listed..
Once this appears in a summary screen, click on the Add Miscellaneous Income Item and then describe this as 1099 MISC received for prize that was returned and then record the amount as a negative number. In the description box, you can add as much detail as space permits.
@Taxguy100
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