My wife and I are retired; 2019 returns are our first while in retirement. We file jointly. In addition to a pension, my wife receives "payment in lieu of medical coverage" from her former employer. This is a quarterly payment to her that is equal to the cost of a medical insurance plan she's not eligible to receive because we no longer live in the same state as her former employer. These payments were reported on a 1099-MISC and no Federal income taxes were withheld.
When I enter the 1099-MISC data as part of Easy Step, it's treated as if it's business income. Is this correct? If not, how do I correctly enter this income?
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The payment should not be treated as business income. It's "other income." Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported as "other income" on Schedule 1 line 8 with the description "Other Income from box 3 of 1099-Misc."
TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.
Which box of the 1099-MISC is the income in?
The entire amount received is shown in box 3 of the 1099-MISC my wife received.
The payment should not be treated as business income. It's "other income." Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported as "other income" on Schedule 1 line 8 with the description "Other Income from box 3 of 1099-Misc."
TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.
Thanks! That did it. I deleted the 1099-MISC I'd already entered and the Schedule C that was created after it was flagged for missing data when I ran error check.
Your help is very appreciated!
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