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Level 2
posted Feb 14, 2022 7:53:15 PM

1099-MISC extended termination pay - retired insurance agent

My retired father was an insurance agent and he continues to receive extended termination payments under a 1099-misc in relation to policies he sold when working.  His accountant always filed this as Schedule 1 Line 8 "Other income" and then just had an additional statement that listed these as Extended Term Pay.  I'm not sure if the accountant actually filed the 1099-misc or not.

When I enter these 1099-misc into Turbo Tax it creates a Schedule C from the 1099-misc and wants to create a business out of it.  I figured out how to disconnect Schedule C from the 1099-misc and then do an override for Schedule 1 Line 8 to force it there .... BUT is this the way to get around the Schedule C in TurboTax

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4 Replies
Expert Alumni
Feb 14, 2022 8:13:28 PM

It will work.  But you should be going straight to Wages and Income to LESS COMMON INCOME to MISCELLANEOUS INCOME to OTHER REPORTABLE INCOME.  Then enter a description and amount and you're set.

Level 2
Feb 14, 2022 8:16:24 PM

Robert, thank you for the reply.  I would still enter the 1099-misc information from each one received, or not enter them at all and just report it under Less Common Income?

Expert Alumni
Feb 14, 2022 8:28:37 PM

Please follow these steps to report 1099-Misc as other income:

  1. Open or continue with your return
  2. Click on Show more next to Other Common Income under Income & Expenses section
  3. Click on Start next to Form 1099-MISC
  4. Select Yes to the question Did you get a 1099-MISC?
  5. On the next screen, enter the information on the 1099-MISC form you received. The amount should be reported in Box 3 as Other income 
  6. Answer the questions on the screens that follow. When you get to the screen that says Did the xxx involve an intent to earn money? Select No, it didn't involve an intent to earn money.
  7. Continue, then Done.

 

@WallyTheDog

Level 2
Feb 14, 2022 8:46:03 PM

FangxiaL ... this worked as long as I unchecked the questions asking if he received this income in 2019, 2020, and expected 2022.  Once I did that then the "intended income" question comes up, otherwise it doesn't.  Thanks, this removed all my red exclamation alerts on my forms.