Tax Year Prior to 2020: 1099-misc

[borumrm]

Following these instructions forces me to complete a schedule C section.  This does not seem appropriate since this income was from a levereged REIT.  Schedule C requires me to classify the type of business , the business address etc.  So it seems this path is not one I should go down since I can't answer any of the questions that Turbo Tax presents to me.  Does this change your reply/answer?

[JohnW222]

No, this won't cause any issues with the IRS.

The IRS isn't looking for the presence of Form 1099-MISC on your return, per se.  It's aware of the income, since the 1099-MISC has been reported to it by the payer. 

The IRS merely confirms that there's income of at least this amount reported someplace on your return where this type of income could potentially be reported.

[borumrm]

Am I missing something?  My 1099R does not even have a Box 3.  1099R is for reporting distributions from IRA's, pension , etc.

[KathrynG3]

Form 1099-R is not the same as Form 1099-MISC.

Form 1099-MISC Box 3 is other income not subject to self-employment whereas Box 7 is other income subject to self-employment, triggering the creation of Schedule C, in hopes that there are expenses that can be deducted against the income.

[ghb13243]

where do I input the codes to download my 1099 from my broker to Turbo Tax Business

[19332512csb]

box 3, should be entered as other income, however TT insists on Schedule C.  Don't have a C

[Irene2805]

You can enter the 1099-MISC in TurboTax as "Other Common Income," which is reported on line 8 of 1040 Schedule 1 and will not generate Schedule C or SE tax.  Please use the following steps:

1. Click on Federal > Wages & Income.
2. Scroll down to the Other Common Income section. 
3. Click on the Start/Revisit box next Form 1099-MISC. 
4. On the screen Did you get a 1099-MISC?  click on the Yes button.
5. On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.
    
6. On the following screens, answer the following questions:
   • Did it involve work that's like your main job? No.
   • You got it in 2020
   • No, it didn't involve an intent to earn money

 7.  Continue through the rest of the interview screens. The income will appear as Other Income.

@19332512csb

TurboTax Business will import information only from QuickBooks; it will not import 1099s from any financial institution.  TurboTax personal income tax preparation products can import 1099s but those products do not support the preparation of income tax returns for entities, such as corporations.

@ghb13243

[JohnLikes2Travel]

Fidelity does a similar 1099-MISC for income from the lending of stocks. Not sure why this would not be interest but that is the way Fidelity sends it out. 

The Turbotax software has one gottcha that will screw up the questions asked and put in form hell? 

If the information is pulled in automatically turbo tax will generate a self employment form you can not deleted or save your return. 

You have to delete this original form and start over manually. 

Under wages> other income > Form 1099-MISC, enter the information manually, and carefully step through the process. You will eventfully come to a question: "Did you intend to earn income from this?" Make sure to answer no. Make sure to answer no, on the question if you intend to have this income in the following or previous year. 

Although you really did intend to earn income, you are not self employed. Checking yes on anything related will keep you from being to finish your return. You must delete all the 1099-MISC information and start over.

[gregspears]

Thanks JohnLikes2Travel !!   You nailed it -- that single question response made all the difference  "Did you intend to earn income from this?" <--- Make sure to answer no.

No more Schedule C prompts  -- excellent

  -----  Thanks!

[Lynn3520]

I deleted the imported1099-misc received from investment firm and entered the box 3 other income value manually as instructed....do I now just delete schedule C in turbo tax? Turbo Tax still has Schedule C and asking for business information. This was not self-employment income.  Thanks for the help!  

[AliciaP1]

Yes, since you have corrected the 1099-MISC you can delete the Schedule C.  To do this in TurboTax Online please follow these steps:

1. Within your return in TurboTax Online search for Schedule C.
2. Click the Jump to link in the search results.
3. If you get to a self-employment summary screen, delete the self-employment income line with the trash can icon.
4. If you get to the question Did you have any self-employment income or expenses? answer No. 
5. Click on Tax Tools on the left side of the screen.
6. Click on Delete a Form. 
7. Scroll down to your Schedule C and Schedule SE and click Delete if they are still there.

@Lynn3520

[Lynn3520]

Thank you so much for your reply and confirmation. I went ahead and deleted the form. Hopefully I did it correctly.