How do I enter a 1099 that was non taxable income?

[Kat]

A 1099-MISC?  In which box do you find the figure for non-taxable income?

[bullitt]

Box 3, it’s penalties for final wages waiting time which IRS has ruled as non taxable. When I enter it in Turbo Tax it treats it as a separate business entity and adds significant amount to amount owed. My other 1099-MISC is actual income.

[Kat]

I believe that the info included in the TurboTax FAQ below will help you with this issue.  Once you've entered your 1099-MISC, you'll have several interview questions that should eventually get you to the correct conclusion.  Please post back if you have further difficulty.

https://ttlc.intuit.com/replies/4770594

[Kat]

One other question:  You said the "IRS has ruled is non-taxable".  From whom did you receive this ruling?

[bullitt]

I believe it's in a published information letter I read online. Or is that just for California State Return?

[Kat]

Hmmm, that one I don't know the answer to.  But see if the interview leads you to the desired conclusion.  If not, post back.  Thanks for your response!