topic Re: Received 1099-MISC solar in Get your taxes done using TurboTax

Received 1099-MISC solar

greatgoogly — Tue, 24 Feb 2026 03:43:15 GMT

I have solar panels on the roof of my home. I received a 1099-MISC for about $1500 in solar credits that a broker sold on my behalf. This is a yearly occurrence. I've done this the last 4 years and never had a problem. This year Turbo Tax is giving me all sorts of errors. Looking for a "Principal Business Code" for which I have no idea what to enter and highly suspicious that even if I find that, they are treating this like a business and hence will be looking for self employment taxes and other garbage.

It's a rabbit hole of bureaucracy. This didn't happen last year or the year before that. It is incredibly frustrating.

Re: Received 1099-MISC solar

MonikaK1 — Sun, 05 Mar 2023 18:00:33 GMT

If you are prompted to select a Principal Business Code, then yes, the program is setting up a Schedule C business. You can delete the 1099-MISC that you entered (click on the trash can icon that appears next to the income entry).

To enter income from a Form 1099-MISC that is not from working, in TurboTax Online, enter Form 1099-MISC information in the section to which it pertains. In Wages and Income, there are several locations where you can enter a Form 1099-MISC.

If you enter Form 1099-MISC in the Other Common Income section, at the screen "Does one of these uncommon situations apply?", a list of options appears from which you can select that includes reasons for Form 1099-MISC other than self-employed income.

In the alternative, you can enter the amount under Other Reportable Income. In TurboTax Online:

Go to Wages and Income
Scroll down to Less Common Income
Go to Miscellaneous Income
Select Other Reportable Income and follow the prompts. Enter a description for the reason for the payment.

See here for another discussion involving a similar topic.

Re: Received 1099-MISC solar

greatgoogly — Sun, 05 Mar 2023 18:13:09 GMT

When I go to "other reportable income" it states specifically "Do not enter income reported on 1099-MISC"

Re: Received 1099-MISC solar

MonikaK1 — Sun, 05 Mar 2023 18:50:57 GMT

You can enter the Form 1099-MISC and identify that it was not income from working so that it doesn't get misclassified as self-employment income:

Select Income from Form 1099-MISC under Wages and Income.
Enter the payer information and dollar amount
Enter a description for the payment
When asked about Uncommon Reasons, select that none apply or select one that adequately explains the reason
When asked about the frequency of payment, select received in 2022
When asked "Did (description) involve an intent to earn money?" answer No (that is, it is not earned income and therefore not subject to self-employment tax)

Re: Received 1099-MISC solar

greatgoogly — Sun, 05 Mar 2023 20:31:55 GMT

Thank You! This appears to work!