topic 1099 misc for student loan repayment, turbotax treating as business income, wants to file schedule C in Get your taxes done using TurboTax

1099 misc for student loan repayment, turbotax treating as business income, wants to file schedule C

BillyBlob85 — Sat, 01 Jun 2019 15:15:23 GMT

Hi, I received a 1099 MISC form as part of a bonus for my job, money is intended for educational loan repayment, but given directly to me. Income is reported on box 3 of the form. When entering into TurboTax, it wants to treat it as business income, and asks for Schedule C - including information such as business info, business code, etc. Is this correct? Any help would be appreciated!

Edited to add: Does it matter that I'm employed by a group that contracts with a larger entity, and the larger entity is the one who paid the bonus, as a "sign-on" bonus?

Anytime you have a1099-Misc, the IRS assumes it is becaus...

JulieH1 — Sat, 01 Jun 2019 15:16:22 GMT

Anytime you have a1099-Misc, the IRS assumes it is because you own a business or provide services "on the side." If that is the case, you are required to file a Schedule C.

It is not uncommon that people send the wrong kind of 1099. So if the 1099 is not related to business, you can enter it in TurboTax this way:

How do I input Misc Income from a 1099 Misc Income that is not a business or farm income, but a reimbursement as a retiree from my employer?

Here is how to report this as "Other Income" on your tax return:

Start in Federal Taxes >> Wages & Income >> 1099-MISC and Other Common Income >> Income From Form 1099-MISC. Click "Start" work through the interview.

After entering the info from the 1099-MISC, continue until you see the question about this being connected to your main job, and say "no." Check only the box for 2017 income. Then answer that this was not an "intent to make a profit." Those three answers should classify this as "Other Income", which will appear on Line 21 on Form 1040.

Make sure you delete the Schedule C if one was generated previously

Does it matter that I'm employed by a group that contract...

BillyBlob85 — Sat, 01 Jun 2019 15:16:52 GMT

Does it matter that I'm employed by a group that contracts with a larger entity, and the larger entity is the one who paid the bonus, as a "sign-on" bonus?

No. they reported it in box 3 which goes in "other income"

JulieH1 — Sat, 01 Jun 2019 15:16:54 GMT

No. they reported it in box 3 which goes in "other income"