I receive a 1099 Misc for my volunteer firefighter LOSAP. It is not taxed by NYS. How do I enter this 1099? It takes out NYS tax when I complete the entry.

[NCFM80]

John,

Which do you recommend:

1.  Delete the 1099-MISC and add it again?

or

2. Go to form and make changes on the form?

Thanks.

NCFM80

[DawnC]

The safest and most accurate way to do it is to delete the 1099-misc and re-enter it from scratch.    There are too many places the income can get moved to a different schedule and you take a 50/50 chance of correcting it using the ''edit'' method.     @NCFM80

[Tomrvc]

Amy is on the right track.  I just went through this on the phone with a Turbotax Expert because I had the same issues with Federal wanting to charge me SE tax, and where to deduct it from Federal income on my NYS return as it is a non-taxable pension in NY.  The following is based on my notes from the call.  I hope this helps.

 On the Federal return, you should only select the current tax year where it asks "How often do you get it?"  The LOSAP Defined Contribution plan I was in was closed down by our Village and we received our final distribution over 2 years - 2021 and 2022.  When I checked off both years, Turbotax wanted to charge me SE tax.  By only checking off 2022, it drops the SE tax, as it is supposed to be.  If you check off multiple years, the Turbotax software thinks it is recurring earned income.  Checking only one year “tricks” the software to realize it is not SE Tax eligible.  I still have to pay Federal income taxes on it, but that is all.

 To subtract it from your Federal Income on the NYS return in Turbotax, go to

Select Changes to Federal Income

Select Other NY Adjustments to Federal Income

Select Other Changes (Adjustments) to your Federal Income

The next screen is "Enter Other Additions", select continue

Next Screen is "Enter any other Subtractions"

Choose the line: Volunteer Firefighter or Ambulance Worker Length of Service Award, and enter the amount from the Form 1099-Misc Box 3

Hit Continue

This will subtract it from your Taxable income on the NY State Return

I hope this helped  my fellow volunteer firefighters.

[steve208]

I have the same problem,  Can't find a way to get an answer.  Just Like You!

TT-Deluxe will not let me e-file with that S-130 "error" and yet the instructions on the help site say we are correct.

Good Luck!

[AmyC]

@steve208  I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the  directions below:

TurboTax Online:

Sign into your online account.

Locate the Tax Tools on the left-hand side of the screen. 

A drop-down will appear. Select Tools  

On the pop-up screen, click on “Share my file with agent.”

This will generate a message that a diagnostic file gets sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.

Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent”

This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.

Please provide the Token Number that was generated in the response.  

[steve208]

You'll need NYS-IT-255 for Additions and Subtractions.  Use the S-130 code under subtractions.  That will back the number out that you entered with your Federal information.  I had a problem in that I opened the box on the worksheet in the left column, popped open the detail and entered the information.  There are two columns to the right, make sure your amount only appears in the right column.  Tech Support, when I finally reached them, were very helpful in getting to the bottom of this issue.

Also:

AmyC:
After my frustration searching on-line for an answer, I spent another 20 minutes dodging 
around all the push 17 to request dinner, etc.  Finally got a LIVE PERSON, I shared my 
return and we went through it step-by-step without finding anything we could do.  She 
then bumped it up a level and I was connected with "Ravin" and we did some 
searching and she involved others.  We finally were able to clear the error by deleting 
the first box next to S-130, which left the same amount in the right column and then it 
cleared!

SO, thanks for reaching out, I'm good.  Let me know if further info from me would help 
others.

Steve208
Rochester, NY

[TOM 334]

DID ALL THAT BUT TURBO TAX SHOWS ERRORS DURING REVIEW BECAUSE SCDUAL C NOT COMPLETED. DO I IGNORE SCHEDUAL C AND FILE ?

[PattiF]

No, you don't ignore the error message about Schedule C. To clarify your question, what income is reported on this 1099-MISC that you are reporting?

[Aaron35]

I received my payout in NJ last last year however I received a w-2 instead of a 1099. When I enter mine in it gives me an error saying my non qualified plans number doesn't add up. How do I fix this as I am getting penalized over $2000 in my taxes.

[KrisD15]

To clarify, where is the income reported? Is there anything in Box 1 or Box 12 or Box 14? 

[Aaron35]

Box 1.

[DaveF1006]

To clarify, did you enter this income as  W2 income or as a 1099R?

[adkkmf]

I agree, it is so confusing every year and takes up alot of time trying to do it correctly, which is hard to figure out as it goes to schedule C for business income which it isn’t.

[DaveF1006]

There is a way to report it so it doesn't report as Schedule C income.

1. Go to federal
2. Wages and income
3. 1099-Misc and other common income
4. income from 1099 MISC
5. As you answer  questions from the screen, you will indicate that this isn't like your main Job and there was no intent to earn money.
6. If answered correctly, the income will appear as other income on line 8Z on Schedule 1 and then recorded on line 8 of your 1040 as other income.

If this is done correctly, it will not be reported as Schedule C income.

@adkkmf 

[adkkmf]

Thank you. I finally figured it out.  It is taxable income however which seems unfair but not much to do about that i guess. If it was claimed as hobby income its not taxable i was told, but i would guess its not legal either. Thanks.