1099-MISC Retirement Income

Forum|Forum|7 years ago
June 5, 2019
4 replies
65 views

My mother in-law receives a 1099-MISC for her deceased husbands pension. It is a non-qualified plan. When we enter this data as a 1099-MISC, Turbo Tax classifies it as a sole proprietor business, and requires that we enter all the data for a business which it is not, and we do not have. How should this income be entered so that it is not classified as a business?

TurboTax Deluxe Windows

Best answer by

To report the income:

Enter the 1099-Misc in the Other Common Income section (Enter "1099misc" in the Search Box and Select "Jump to 1099misc")
For the description, enter "Survivor Retirement Benefits", that it does not involve work like your main job, and that it did not involve an intent to make money, and is not a recurring payment (received in the past or expected in the future).
Yes, it will be recurring but this is the proper way to report 1099-MISC "retirement payments" without having it treated as self-employment/business income.
The income will be reported on line 21 of her return.

Anonymous

Answer

To report the income:

Enter the 1099-Misc in the Other Common Income section (Enter "1099misc" in the Search Box and Select "Jump to 1099misc")
For the description, enter "Survivor Retirement Benefits", that it does not involve work like your main job, and that it did not involve an intent to make money, and is not a recurring payment (received in the past or expected in the future).
Yes, it will be recurring but this is the proper way to report 1099-MISC "retirement payments" without having it treated as self-employment/business income.
The income will be reported on line 21 of her return.