topic I have coupon interest from a prepaid forward securities contract. Can't I report that as ordinary income? in Get your taxes done using TurboTax

I have coupon interest from a prepaid forward securities contract. Can't I report that as ordinary income?

abcallahan — Tue, 03 Feb 2026 09:40:25 GMT

My 1099-MISC intructions say to report as ordinary income but TurboTax tries to have me report it as business income. This is not correct. How do I get around this circular issue?

Re: I have coupon interest from a prepaid forward securities contract. Can't I report that as ordinary income?

baldietax — Thu, 20 Feb 2025 01:28:45 GMT

had a similiar issue with one of those cash bonuses from a brokerage last year which was reported in 1099-MISC Box 3; there's a question after you put in the 1099-MISC whether it was an "Intent to earn money". Say No to that and it should flow to Schedule 1 line 8z and then hit your 1040 on line 8.

I'm not a CPA and not encountered a "prepaid forward securities contract" so I can't speak to any special tax treatment (tho, sounds like ordinary income to me) - but that's how to do in TT.

Re: I have coupon interest from a prepaid forward securities contract. Can't I report that as ord...

AmyC — Thu, 20 Feb 2025 16:47:19 GMT

Only because you have a statement saying to report it as ordinary income, would you do so. Typically, it isn't ordinary income -but can be. So you are in great shape!

Follow these steps:

Log in to your return.
Go to income
Scroll down to Other Common Income
Select Income from 1099-MISC
Edit/ Start/ Revisit
Enter income -the income should be in box 3,
Enter tax if any withheld in box 4
Continue
Describe the reason -
continue
None of these apply
Continue
Did this involve main job?
No
Continue
How often do you get?
Got in 2024
Continue
Intent to earn money?
No
Continue
Do you have another?
No
Continue

Re: I have coupon interest from a prepaid forward securities contract. Can't I report that as ord...

user17753549921 — Sun, 05 Apr 2026 02:15:28 GMT

I have the same issue. I use the Desktop version 2025. I do not see the question 19 listed below (Intent to earn money). After 17 and 18 below, it states

-------------------------

Add new Line of Work

We’ll include this income in the Self-Employed section (Schedule C) of your tax return. You can add any other self-employment income not on a 1099-MISC later.

----------------------------------

This is not a self-employment Income. If I choose the FORMS view (View menu), there is an option to click on 'Other Income' but it reduces the refund drastically. Not sure which is the right option

Re: I have coupon interest from a prepaid forward securities contract. Can't I report that as ord...

DianeW777 — Mon, 06 Apr 2026 14:42:04 GMT

It depends. The statements are the same in both TurboTax Online and TurboTax Desktop. It's important that you made the appropriate selections so that TurboTax does know that it was not self employment income. These questions are in both versions.

Open your TurboTax Online/Mobile or TurboTax Desktop tax return
Search (upper right) > type 1099misc > click the Jump to... link
Begin your entry of the 1099-MISC.
It's important for you to select 'None of these apply' and then you should also select the following:
1. 'No' on the screen 'Did the '____' involve work that's like your main job?'
2. 'No' on the screen 'Did the '____' involve an intent to earn money?'

This will report the income without any business/self employment activity and it will show up on Form 1040, Line 8 (From Schedule 1, Line 8z).

Continue to complete this section.

@user17753549921