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

1099-Misc

bcampagna — Fri, 29 May 2020 01:07:30 GMT

My spouse received a 1099-Misc for an investment her father made for her many years ago. To make a long story short the company folded and she was issued a check for what little was left in the fund. I entered the info for the 1099 but now after the Federal review I am being asked to input information on the schedule C as if my spouse had a business. Some of the questions are:

- Is the activity a qualified trade or business under section 199A?

- Accounting method - Cash, Accrual, Other?

- Principal business code?

Did I do something wrong?

Re: 1099-Misc

Carl — Fri, 29 May 2020 01:17:02 GMT

First, go into the business section and delete the business that will be listed there. YOu ***MUST*** do this ***FIRST***.

Then go into the section where you entered the 1099-MISC and *if* it's listed there, delete it.

Next, if *AND* *ONLY* *IF* the income is reported in box 3 or 7 of the 1099-MISC follow the below guidance to enter it so that SCH C is not generated.

Reporting 1099-MISC (box 3 or box 7) that is not self-employment income

Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.

Enter the 1099-MISC exactly as printed, and then Continue.

Enter the reason you got this money – be it scholarship, bonus, streaking butt naked across the 50 yard line of the super bowl, whatever. Then continue.

Select None of these apply, then Continue.

Select No, it didn’t involve work….. and Continue.

Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.

Select No, it didn’t involve an intent to earn money, then Continue.

Select NO, then Continue.

Click the DONE button, and that does it.

Re: 1099-Misc

bcampagna — Fri, 29 May 2020 01:39:12 GMT

That worked.

Thank you very much.

P.S. How did you know the money was earned for streaking at the Super Bowl:-)