TurboTax is putting personal income from 1099-MISC onto schedule C and (incorrectly?) calling it business income

My brokerage account gave me some fee rebates for 2023 and reported them as "Other Income" in box 3 on a 1099-MISC form. When I imported this form into TurboTax, it automatically entered it as business income on schedule C, and now TurboTax is requiring me to enter a valid 6-digit Principal Business Activity Code for this income before I can complete my return. This was not business income, however, so I don't have a business category to report. Is there a way to move this income to the personal section of my return and avoid this?

5139

Expert Alumni

Mar 25, 2024 5:42:53 PM

Yes, you can report it as "Other Income". To do so in TurboTax:

Type "Other Income" in Search and hit Enter
Click on "Jump to other income"
Enter the information from your Form 1099-MISC, and click on Continue
Enter a description such as "Fee Refunds" and click on Continue
On the screen with "Does one of these uncommon situations apply?", indicate "None of these apply"
Answer "No..." to "Did the Fee Refund involve work that's like your main job?"
Answer "I got it in 2023" when asked "How often did you get income for Fee Refund?"
Answer "No, it didn't involve an intent to earn money."

Before reporting the 1099-MISC as Other Income, delete the 1099-MISC entry associated with Schedule C/Business Income.

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TurboTax is putting personal income from 1099-MISC onto schedule C and (incorrectly?) calling it business income