TT reports "A Link to Schedule C should not be linked"

Forum|Forum|3 years ago
February 23, 2023
1 reply
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After updating the program this morning (Feb 23, 2023), I received an error message involving MISC-1099 that says "Schedule C should not be linked when the MWP qualifying as difficulty of care payments exclusion box has been checked". This error didn't exist yesterday. It looks like there's a bug in the program update released today. Please advise on how to resolve this issue.

JamesG1

Level 15

Was your intent to report the 1099-MISC as income into a Schedule C?

Or did you intend to report the 1099-MISC income as Medicaid Waiver Payments and did you intend to include such payments in earned income for purposes of claiming a credit or other tax benefit?

Was the 1099-MISC reported at the screen Certain nontaxable Medicaid waiver payments... here.

This screen is accessed at:

Federal
Wages & Income
Less Common Income
Miscellaneous Income, 1099-A, 1099-C
Other income not already reported on a Form W-2 or Form 1099. Continue through several screens.

If you were intending to report the Medicaid Waiver Payments, I would remove the entry, Review, then re-enter and see if the message returns.

If the income is intended to be reported on a Schedule C, was this the only income for the Schedule C? Were there any expenses reported against the income?

If you were not intending to report either of these incomes, what were you wanting to report?

@Backlight3614

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Backlight3614Author

Level 2

The income is intended to be reported on Schedule C. This is the only income for Schedule C. There are not any expenses reported against this income.

Linking the 1099-MISC income on Schedule C was working fine yesterday (Feb 22, 2023) and I was ready to file today. However, after today's (Feb 23, 2023) Turbotax program update, the error referenced above suddenly appeared.

To be clear, this income has nothing to do with Medicaid Waiver Payments. I had no idea what "MWP" referred to until several Google searches.

I would appreciate your thoughts on how to resolve this issue, including checking if a bug worked its way into the Turbotax program after today's program update. Thank you.

JamesG1

Level 15

The 1099-MISC is intended to be Schedule C income. And you have the Schedule C already created.

So I would delete the 1099-MISC, then run Review.

Then I would re-enter the 1099-MISC but I would enter the 1099-MISC within the Schedule C.

Click Edit to the right of the self-employment activity at the screen Your 2022 self-employed work summary.
Click Add income for this work.
Select Form 1099-MISC. Continue.

I am not sure why the income is on a 1099-MISC instead of a 1099-NEC.

Hope that helps.

@Backlight3614

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