My rental income (Sch E) also gets reported in my 1099 Misc. Income line which artificially increases my total income (gets reported twice). Any thoughts? thanks!

[TomYoung · Accepted solution]

Yes, simply ignore the 1099-MISC.  Don't enter it at all.  If you're reporting the amount on Schedule E then you've fulfilled your obligations as a taxpayer.

Tom Young

[paulfamilyfarm]

Thank you Tom. My problem is that I report the 1099 income in my rental income reporting section (Schedule E), and turbo tax program automatically inserts that same income into the 1099 misc. column and doesn't allow me to delete it? (duplicate) I must be doing something wrong.

[TomYoung]

If I tick the "No" button on the page "Was Income for This Property Reported to You on Form 1099-MISC?" and then enter an amount of rental on the "Enter Any Rental Income" page I'm certainly not seeing any 1099-MISC entry for the same amount in the income tax return.  There's absolutely no connection between an amount entered on that "Enter Any Rental Income" and a 1099-MISC.  How would TT even know about a 1099-MISC in this case?

Make sure you've deleted that 1099-MISC and try again.

[paulfamilyfarm]

thank you. I will try to enter the income under "enter any rental income." I do have 1099s from the land tenant and when TT asked I put that info in. That is how TT knew, and for some reason TT duplicated the income by adding it to the 1099 misc column as well. Thank you again!!!

[Heavenly314]

Since the government receives the 1099-MISC from the property manager, would it not trigger an audit since it is linked to your name and it is not reported in that specific tax section?

[Critter-3]

Listen up ... all you have to do is enter the rent on the Sch E in any way possible.  Entering it on the 1099 form in the program does NOT send that form to the IRS with the return.  They get a copy of the 1099 directly from the issuer so they don't need it from you.  The program has a 1099 entry screen for your convince only so don't worry about it...   you will either enter the income on the 1099 entry screen  OR the Sch E section but do NOT do both ... as you have noticed it is not a good thing to do.  

[Hal_Al]

As Critter-3 said, the IRS only matches your total income to the 1099-Misc that they receive.  There is no line item on your tax return to place 1099-Misc income.  It doesn't matter if you enter the rent received at the 1099-Misc screen or the other rent received screen. Just don't do both.

That said, the "normal" way (the "flow" in the TurboTax [TT] program) is to enter the rental income at the 1099-Misc screen and don't re-enter it when asked if your received any rent not shown on a 1099-Misc.  That makes the 1099-Misc part of your TT worksheets.  But, as others have pointed out TT does not send that 1099-misc worksheet to the IRS. It's only for your records.

But, you don't "have to" do it that way. Either way works. Just don't enter it twice.