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

1099-MSC

fjtayls — Wed, 24 Mar 2021 19:13:01 GMT

My granddaughter got a 1099-MSC for a college internship program. Since this was not for a sole-prop. business why is a schedule C required - or how to enter the info without a Sched C being required?

Re: 1099-MSC

RayW7 — Wed, 24 Mar 2021 21:07:44 GMT

The minimum income amount for filing in 2020 depends on your filing status and age. In 2020, for example, the minimum for single filing status if under age 65 is $12,400. If your income is below that threshold, you generally do not need to file a federal tax return.

However, you have to file an income tax return if you make at least $400, from what the IRS considers self-employed income. Self-employed income is reported on a 1099-MISC form, which is what you have.

The IRS has copies of your 1099-Misc forms. If you do decide to file a return, you should include them.

Since the income was reported in Box 3 on a 1099-MISC it should be reported as "Other Income".

I agree with the post from ColeenD3.

[edited 3/24/2021| 2:05pst]

@fjtayls

Re: 1099-MSC

fjtayls — Wed, 24 Mar 2021 19:36:13 GMT

the income was reported in box 3 - other income. Since it is for a three-month internship - should the business information be that of the company where the internship was performed? Or, should we create a quasi-company for her as a three-month consultant and use her college address as the address of her "company" or use her home address?

Re: 1099-MSC

fjtayls — Wed, 24 Mar 2021 19:43:19 GMT

Since it was for an internship program, why wouldn't it be reported on line 8 as other income -

using schedule 1 line 3b - other income from 1099-MSC line 3?

Re: 1099-MSC

ColeenD3 — Wed, 24 Mar 2021 20:29:32 GMT

Income from a 1099-MISC in Box 3 is other income.

You can enter the 1099-MISC in TurboTax as "Other Common Income," which is reported on line 8 of 1040 Schedule 1. Please use the following steps:

Click on Federal > Wages & Income.
Scroll down to the Other Common Income section.
Click on the Start/Revisit box next Form 1099-MISC.
On the screen Did you get a 1099-MISC? Yes
Enter the information from the 1099-MISC.
On the following screens, answer the following questions:
- Did it involve work that's like your main job? No.
- You got it in 2020
- No, it didn't involve an intent to earn money