topic Re: 1099 Misc in Get your taxes done using TurboTax

Tax Year Prior to 2020: 1099 Misc

PlanetW — Thu, 11 May 2023 18:12:41 GMT

I received a 1099 Misc for a small amount of money that I receive every month for a Firefighters Retirement Benefit. I entered it as Personal Income but Turbo Tax wants to turn it into a Business and is asking me to complete questions about my "business" and it moves it into the Business area. Is this a glitch or am I missing something?

Re: 1099 Misc

MinhT1 — Mon, 24 Feb 2020 22:32:41 GMT

If you receive a form 1099-MISC for a retirement benefit, then you are not considered as self-employed and do not need to file a Schedule C.

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2019, not in previous years and not in 2020, you will then have the screen where you can say that it did not involve an intent to earn money.

Re: 1099 Misc

PlanetW — Thu, 27 Feb 2020 16:28:07 GMT

Thank you for your reply.

I deleted the 1099-Misc from my business section. I have gone back through and reentered it just under personal income. I did not have a page that said "did this involve an intent to earn money". It did ask "Did [it] involve work like Eric's main job?" to which I answered no. I also took an option to call it a commission, prize, award, etc. from someone who was not Eric's employer (we are self employed). It then tells me Guess what? You can deduct expense for this and puts it under business and charges me self-employment tax. If I just delete it from business and don't go back through the personal part it shows errors when I review.

Re: 1099 Misc

PlanetW — Thu, 27 Feb 2020 16:29:23 GMT

I missed the last part of your message. I used the work around and got the page regarding intent to earn money.

Thank you very much. I hope I'm all set

Re: 1099 Misc

rosimccoy — Fri, 28 Feb 2020 17:41:01 GMT

Thanks for the great info on inputting a retirement benefit into TT. I tried your "work around" and it did get me to the screen where you can say that it did not involve an intent to earn money. However, it still marked it as a business expense! I think my problem also lies in the "Does one of these uncommon situations apply to you?" page. Which answer is the correct for getting retirement benefit for legal services? No cash received? I am just stumped!

I really appreciate the help you have given so far -----it is the only help I have found on this topic!

Re: 1099 Misc

KathrynG3 — Fri, 28 Feb 2020 17:52:57 GMT

You may want to try entering retirement benefits received on Form 1099-MISC this way instead:

To enter in TurboTax, follow these steps:

From the left menu, select Federal
Wages & Income scroll all the way down to Less Common Income and click Show More
Select the last listed option for Miscellaneous Income 1099-A, 1099-C, click Start
Next, select the last listed option Other Reportable Income
Did you receive any other taxable income, click yes
Other Taxable Income: Enter your description and the amount and click Continue and Done. Disregard the comment "Do not enter income from Form 1099-MISC here" because this is meant to guide taxpayers reporting typical 1099-MISC income.

Re: 1099 Misc

rosimccoy — Fri, 28 Feb 2020 18:17:03 GMT

It worked!!!! Thank you very much for saving my sanity!! I hope intuit takes a look at the 1099-MISC portion of TurboTax, because it just doesn't work.

Many thanks, good wishes and prayers,

Rosi

Re: 1099 Misc

WKins2 — Sat, 29 Feb 2020 00:09:01 GMT

You are most welcome. Remember if you need help with anything else while preparing your return, please post the questions and someone will be able to provide you with assistance.

Re: 1099 Misc

kk31 — Wed, 18 Mar 2020 14:41:42 GMT

i tried this but when i do a review it is asking for a busisness number

Re: 1099 Misc

BillM223 — Wed, 18 Mar 2020 14:59:35 GMT

@kk31

You tried what? There were several things listed above.

Since we can't see your screen, we in the Community don't know the context of this "business number", but it sounds like TurboTax is asking for the 6 digit business code for your business.

If you follow the instructions above from KathrynG3, you should be able to avoid such business questions.