I received a 1099-misc from for strike benefits. Our union is telling us this should not be he ld to pay income tax and benefits should be reported box 21 1040. Turbo tac is deducting on the the 1099

[Lisa995]

Is the money in box 3 or box 7?

[BridgetM1400]

Box 3

[Lisa995 · Accepted solution]

Then youre not answering the 1099MISC questions properly to get it to land on Line 21 Other Income.

Federal taxes Tab > Other Uncommon Income >1099MISC > Fill in the payer name & ID number, enter the money in Box 3 > Continue> Describe the reason "Strike Benefits" > Continue> None of These Apply > Continue > No it didn't involve work like my main job > Continue > I got it in 2016 > Contineu > No it didn't involve an intent to earn money > Continue > Do You have Another 1099MISC?  If not choose NO and you should be done and the income will appear on Line 21.

[bmidget9]

are they suppose to take out taxes on the strike benefits? I followed your notes and then my federal dropped.

[MaryK4]

No, they normally do not take taxes out of the strike benefits unless you specifically ask them to, they would be on your 1099-MISC in Box 4.   If you followed Lisa995 instructions, it moved the income to Line 8 of Schedule 1 (the new Line 21 Other Income) which may have removed the Self-Employment tax- which is why you want it as Other Income.

@bmidget9