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Why is an inherited 457(b) annuity 1099-misc treated by turbo tax as a small business?

 
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1 Reply
ColeenD3
Expert Alumni

Why is an inherited 457(b) annuity 1099-misc treated by turbo tax as a small business?

An inherited annuity should be reported on Form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

 

If the income is in Box 3, report it as Other Income.

  1. Answer No to having self-employment income or expenses.
  2. Continue on until you get to Great, let's keep getting the details...
  3. Select Add more income.
  4. When asked if you want to be guided with questions or see a full list, pick the list option.
  5. Select Other Common Income and then select Start next to Form 1099-MISC.
  6. You'll then be able to add this 1099-MISC

Box 3. Generally, report this amount on the “Other income” line of Schedule 1 (Form 1040 or 1040-SR), or Form 1040-NR and identify the payment. The amount shown may be payments received as the beneficiary of a deceased employee, prizes, awards, taxable damages, Indian gaming profits, or other taxable income.

 

BOX 3

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