No. You do not enter your rental income twice in the program.
You will first start from the Form 1099-MISC section to report income. Then you will go to the Schedule E section to enter any expenses if there are any. If you do not have any rental expenses, you don't need to revisit the Schedule E. You only need to enter your rental income once under the Form 1099-MISC section.
To enter the Form 1099-MISC rental income in TurboTax Premier online program, go to:
1. Sign in to your account and select Take me to my return
2. Across the top, select Federal Tax / Wages & Income
3. Scroll down to Other Common Income 1099 MISC , select Start to follow the prompts
To enter your rental expenses, follow these steps:
1. At the right upper corner, in the search /Find box , type in schedule e and Enter
2. Select Jump to rental ( schedule e)
3. Income from Rentals or Royalty Property You Own- select Yes to proceed
4. On screen, Rental and Royalty Summary, under your (already-entered from 1099-MISC section) rental property, select Edit to enter expenses. See attached screenshot
Do I enter 1099 MISC box 1 rental income on 1099 misc
Yes, you would enter the amount in Box 1 (Rent) into the rental income section that @LinaJ2018 described above.
All income and expenses related to the rental will all be included in this section.
This is nothing but a work around that is crazy. The 1099-K is required on Schedule C (Trade and Business) line 1 not schedule E (Supplemental Income). The problem with this 1099-K is it was intended for business income for goods (products) and services (Labor) that use online electronic payment processing (POS transactions) not for rental payments which is caught up in this mess now because of the many Rental payment processing Apps online now Landlords have started using them to make pay rents as Paypal and Zelle could be problematic, but now it has become intwined with this new IRS requirement they have to issue 1099-K's sales of goods and services (business) which is then causing tax reporting problems . If you don't use these platforms you don't won't encounter these 1099-K problems Intuit is tell you to stick in a 1099 misc which is used for reporting payments to others you hired in excess of 600.00. What a fricken Mess!
The add'l problem is that if you received refundable amounts from tenants as in Security Deposits held in Trust the IRS says not to report as income on your taxes unless you made a deduction for repairs for which you will have an expense deduction to offset it otherwise it has to be returned to the tenant by law THE 1099-K INCLUDES IT AS INCOME AND PEOPLE ON HERE ARE TELLING YOU TO WRITE IN A DEDUCTION FOR SECURITY DEPOSIT REFUNDS WHICH THE IRS IS NOT ALLOWING.
Sorry, I will file my income and expense on Schedule E to match my financial records period. I quarentee you I will not be audited and if I am, I'm prepared!
@DiddlyD there is no requirement to enter 1099's as such using the Turbotax form. just say you didn't get any then you can enter whatever you like.
the following is from the IRS website and would apply to similar non-income items like security deposits:
If you allow your customers to receive cash back when they use their debit cards for purchases:
If you allow your customers to receive cash back when they use their debit cards for purchases, the Form 1099-K you receive will include those cash back amounts as part of the gross amount of payment card transactions. Generally, you would not include cash back amounts as part of your business's gross receipts on your income tax return, nor would you claim such amount paid to a customer as a business expense. It is important that you maintain records of customer cash back activity over the course of your tax year.
whether the IRS will send you a notice if the k and reported amounts disagree is unknown. at least schedule c has a line for returns and allowances for those that want the amounts to match but the reported amount includes non-income amounts. I wouldn't especially if that amount is large which can be the case
as for Turbotax - probably just a p y a approach since there would be complaints from those who only entered taxable revenue and then got an IRS notice for a mismatch. in other words really a can't win situation
Please don't insult me, I know there is no such requirement but people on here keep giving out instructions work around instructions like there is one. I don't intent to do anything with the 1099-K it not relevant to filing Schedule E. It was a requirement made to online businesses that process money transactions electronically. IRS will have a mess to deal this tax season over no doubt!
Since we cannot predict how the IRS computers will possibly handle this "income mismatch on a CP2000 letter" in the future all you can do is what is correct to you and keep excellant records if you are ever audited.
The folks here are trying to give options on how to handle it to avoid a possible IRS audit situation in the future.