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New Member
posted Jul 27, 2025 3:21:02 PM

I have a retirement benefit that is reported on a 1099misc in box 3. This is not employment. TurboTax reports on Sch C instead as other income on Sch1 How do I fix?

0 2 1060
2 Replies
Level 15
Jul 27, 2025 6:05:15 PM

@jmgretired if it is not to be reported on Sch C, then it is not related to work.  

 

go back and look at how you answered the questions related to the 1099-MISC entry. 

Level 15
Jul 27, 2025 7:26:29 PM

@jmgretired 

 

I agree with @NCperson. You must have answered a question wrong somewhere along the line. Income from 1099-MISC box 3 does not normally go on Schedule C.


Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it's reported as "other income" instead of as business income. It will be reported on Schedule 1 line 8z with the description "Other Income from box 3 of 1099-Misc."


After you enter the information from the 1099-MISC form and click Continue, TurboTax will ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.

 

  • "Describe the reason for this 1099-MISC." - It doesn't matter what you enter. Enter a short description such as "Retirement benefit." Click Continue. You will see this description used in some of the subsequent questions, but it will not appear on your tax return.
  • "Does one of these uncommon situations apply?" - Select the last choice, "None of these apply," and click Continue.
  • "Did the Retirement benefit involve work that's like your main job?" - Select No and click Continue.
  • "How often did you get income for Retirement benefit?" - "I got it in 2024" will already be checked. Do not check any of the other boxes. Just click Continue.
  • "Did the Retirement benefit involve an intent to earn money?" - Select No and click Continue.