1099-MISC Retirement Income

[crissmv1]

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?  

[ToddL · Accepted solution]

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.

[crissmv]

OK, I did all that, but it still wants to complete Schedule C.  Should I just ignore Schedule C?

[ToddL]

You can't ignore the Schedule C once it is in the tax file.

If you had already entered the 1099-MISC and triggered the program into starting a Schedule C, you will have to use the "delete a form"  tool to remove the Schedule C and the Form 1099-MISC.

Why does this happen? Once you enter (or import or transfer) certain information, the program creates or updates forms and worksheets that use that information. In many cases, you cannot "change" that information in the interview process - in a manner of speaking, it has been "written in ink" on the forms. You have to delete the form and any associated worksheets in order to correct.

For online versions: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1894474-how-do-i-delete-forms-in-turbotax-online">https://ttlc.int...>

For desktop versions: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1969682-how-do-i-delete-a-tax-form-in-the-turbotax-cd-download-sof...>

[hildajohnson]

I am now getting another questionnair that just asks for payer and the ID number has 1099 MISC logo but your method on the original questionnair was not working and is what I have been doing in previous years.  The new Turbotax needs to fix this.  What do I do now????