1099-MISC Rental income Reported as "Other Income" box3

[arod370]

Please help...How do I report this as rent if its in Box 3-other income on the 1099-MISC form. This was specifically for past due rents, not sure why they reported in the other income box. This needs to be on Schedule E in order for this income to be offset by other rental expenses. I'm trying to do this correctly without having the IRS sending me letters. Thanks!

[ThomasM125 · Accepted solution]

To avoid IRS scrutiny, I suggest you report the Form 1099-MISC information as it is stated on the form. Then enter a negative adjustment to "Other Income" to back the income out. Then, report the rental income as if it had not been reported on a Form 1099. That way the IRS will match the 1099-MISC form entry on your return with what they received.

You can make that adjusting entry in TurboTax as follows:

1. From the Federal menu in TurboTax find Wages and Income 

2. Find Less Common Income

3. Choose Miscellaneous Income, 1099-A, 1099-C

4. Choose Other Reportable Income

5. Enter a description of the adjustment (misreported income?) and the adjustment as a negative number

[arod370]

Thanks…Very helpful!