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If you receive a form 1099-MISC for profit on promotional shares, then you are not considered as self-employed and do not need to file a Schedule C.   In TurboTax Online, enter your form 1099-MISC by following these steps:   Open your tax return Click Federal in the left-hand column then on Wages & Income Navigate to the list of income categories Locate the section Other Common Income and click on the down arrow on the right Click Start next to Form 1099-MISC Follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax. In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC in 2024, not in previous years and not in 2025, you will then have the screen where you can say that it did not involve an intent to earn money.

I am getting this error IND517-02 when I try efile my returns.  I confirmed my son did not select the (You as a dependant ) on his return .  Which his was approved and received refund .  He was using the free online turbotax version .  Can he ammends his or should i just mail in the returns  .  What is best way to handle this ?

It IS possible to owe no taxes when you file your return, but still have to pay a penalty.    As long as your tax liability for each quarter is covered, then you would not have a penalty at the end of the year.  It is about the pay as you go, not the end result.    This means, if you earn $100,000 total for the year and wait to pay all your taxes until December 1, you WOULD have a penalty.     If you have taxes withheld by your employer equally that matches what you earned each quarter or you made estimated payments, then you would NOT have a penalty.   The vouchers aren't the important thing.  The thing that is important is that your taxes are paid or withheld throughout the year not just at the end of the year.  

Actually, either option 2 or 3 will work.  And they are about the same amount of work so there really isn't one I can recommend because it's easier.     I think I would create a new asset for the portion that was previously personal just in case I wanted to move back in so I wouldn't have to undo this again.  But you seem to have a pretty good handle on this so do the one that works for you.   @jummus 

But if box 4 (federal tax withheld) is also empty, and I don’t report the income by putting zero in box 7, aren’t I at risk of being penalized for not reporting income that was already shared with the IRS?

As a cash basis taxpayer with a business that isn't required to report inventory, you can "sell" all your remaining inventory in one tax year. From that point on, you would have no inventory to track or report. Simply expense your purchases as merchandise or supplies.   This would not be a change in accounting method requiring Form 3115, since you are not changing how you value your inventory. You basically have no more inventory.   @ritanbobk 

You would enter the interest for your second home in the mortgage interest section as if you received a Form 1098.     See the following TurboTax help article to learn more:   Is mortgage interest on an RV or mobile home tax deductible?   @macfam 

Thank you for the response. I live in CA. I tried entering my W2 home office expense and noticed it changed my state refund, and the federal due amount remained the same. Does that sound about right? 

If you decide to remove your son as a dependent then you will not have the issue of duplicate use of his SSN, so you can e-file --- if that is what you want to do.  If you do not claim him, you lose the $500 credit for other dependents, and possibly Head of Household filing status if you are a single parent, and earned income credit.