I am retired but receive a fringe benefit from my former employer on a 1099 MISC. How do I enter that so that turbo tax does not enter it as business income?

[DianeC958]

Depending on the the type of fringe benefit you receive it may be taxable for Social Security and Medicare unless it qualifies as excludable.

Here is a list of benefits that are excludable from being taxed for Social Security and Medicare tax.

• Accident and health benefits.

• Achievement awards.

• Adoption assistance.

• Athletic facilities.

• De minimis (minimal) benefits.

• Dependent care assistance.

• Educational assistance.

• Employee discounts.

• Employee stock options.

• Employer-provided cell phones.

• Group-term life insurance coverage.

• Health savings accounts (HSAs).

• Lodging on your business premises.

• Meals.

• No-additional-cost services.

• Retirement planning services.

• Transportation (commuting) benefits.

• Tuition reduction.

• Working condition benefits.

It the benefits you received is not one of these then the correct place to report the income is as self-employed income.

Link to Publication 15 Employer's Ta Guide to Fringe Benefits

[72andy05]

The issue is not excluding the taxes.  The item is taxable income but the program automatically places it as a self-employed business income requiring a business name, etc.  This is not income from self-employment  but a fringe benefit in the form of a legal services plan paid for by mu former employer.

[ColeenD3]

As listed above, those are the items that are excludable. Your fringe benefit, not being listed, needs to be entered on Schedule C.

[carshene]

Last year this fringe benefit did not go on the business section.  This year information that came with the 1099MISC says "You do not have to file a Schedule C with your tax return because the 1099 reported amount is not self-employment  income"  But Turbo Tax keeps putting it in the business section.  How do I make it just go in the "other income"?

[WendyN2 · Accepted solution]

When you are on the main page of your return - click on the tab at the top that says "Business" - "Business Income and Expenses" when you're under the Income Section. From there, delete out this 1099-MISC (or NEC, whichever one they provided to you) completely by clicking on the trash can at the end of the questionnaire where it gives you the option to enter another 1099 or proceed further. Get that out of this section as for your purposes, it does not belong there. 

After you have cleared that out of the Business section, click on the tab "Personal" at the top of your screen page. Select "I'll choose what I work on" and proceed. Scroll to the almost bottom where you will see the section "Other Income" and click on "Visit All". Click on "Yes", then select "None of the Above" then click on "Continue". 

If you did get a 1099-NEC, select "Yes", if a 1099-MISC, then select "No" and on the next screen it will ask you about a 1099-MISC. Enter all information from the form into the appropriate boxes and finish out that section and you should be all set.

[jolilhn]

Expert's guidance is not working-- still lists me a Sole Proprietor for a fringe benefit valued at $24!  I am using Deluxe-- different guidance?

[DaveF1006]

Yes, there is an alternate way if this is reported on a 1099-MISC. 

1. Go to federal>income and expenses>all income>>show more 
2. Less Common Income> Start
3. Miscellaneous Income,>start
4. Other reportable income>start
5. Next screen asks Any Other Taxable Income>yes
6. The next screen will allow you to report the income with a brief explanation.
7. For an explanation, enter 1099-MISC-fringe benefit and the amount. This will prevent you from reporting your income as a sole proprietor.
8. Be sure you remove your other entry you made so you will not be double-taxed.

[JimHaynes]

I do not see a tab at the top that says "Business" - Business Income and Expenses"

[SamS1]

Record it as Other Income.  Check the 1099-MISC for amount in box 3.

After you have logged in and are in your return:

• Go to Search at the top of the screen.
• Enter Form 1099-MISC in the search box. 
• You will see a Jump To function that will take you to the 1099-MISC input screens. 
• There add the 1099-MISC.

Follow the screens.  Enter "No" to questions related to work and intent to earn money.

[RennaeMac]

Actually, that benefit is also not taxable to the social security and goes on the tax return as plain old "what used to be line 20" income. It is taxable for the federal income tax.

Rennae

Tax Professional for 40 years.

[ColeenD3]

Please see this answer from SamS1.

Record it as Other Income.  Check the 1099-MISC for amount in box 3.

After you have logged in and are in your return:

• Go to Search at the top of the screen.
• Enter Form 1099-MISC in the search box. 
• You will see a Jump To function that will take you to the 1099-MISC input screens. 
• There add the 1099-MISC.

Follow the screens.  Enter "No" to questions related to work and intent to earn money.