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

Error in Handling 1099-Misc

Anonymous — Mon, 09 Mar 2026 07:52:46 GMT

TT has an error when handling 1099-Misc.

When asking about uncommon situations, the option for "Other" is not offered.

When "None of these Apply" is selected, it assumes you have business income.

On Schedule 1, there is an option for "Other" to report 1099-Misc, and that is where Box 3 "Other" 1099-Misc income really should go.

Correct TT to offer an option of "Other" in addition to all the other "Uncommon Situations". Otherwise, there is no way to avoid an incorrect schedule C entry without going back and manually correcting it.

Re: Error in Handling 1099-Misc

JohnB5677 — Wed, 16 Mar 2022 14:57:08 GMT

I'm not sure what you got the 1099-MISC for, but if you continue with the interview from "None of these Apply".

Did the other involve work that's like your main job? = Answer appropriately
How often did you get income for XXXX? = Answer appropriately
Did the other involve an intent to earn money? = Answer appropriately

If you answer

No
2021
No

It will not be placed as self employed. Otherwise, it should be self-employed.

Re: Error in Handling 1099-Misc

Anonymous — Wed, 16 Mar 2022 15:14:23 GMT

Sorry John,

Not true. I mean you may be right with No, 2021, and No. But you can have the intent to earn money without opening a business. This particular 1099-Misc was provided for interest paid by a broker who borrowed securities from my account. No, it is not my main job. Yes, 2021. But YES, I did intend to make money.

......and that is where it goes off the rails. On the Forms view, there is an option to check the "Other" box, which puts the entry where it belongs on Schedule 1. The Step-by-Step is, as I described, wrong. It does not offer the "other" option when listing all the other things that would keep you off the Schedule C.

Re: Error in Handling 1099-Misc

DianeW777 — Wed, 16 Mar 2022 15:34:16 GMT

The question refers to you performing a service with the intent to earn money. It is not referring to your money or securities being used to earn 'unearned' income/money. This is the difference and I can see how it may seem unclear.

If the questions are answered as our awesome Tax Expert @JohnB5677 indicated, it does eliminate self employment income and thereby eliminates self employment tax which is not required in your situation.

The Form 1099-NEC has replaced the Form 1099-MISC for the moment (it happened in the past for a moment). This is the reason for the questions to help you report it in the proper place.

Please update here if we can further assist you.

Re: Error in Handling 1099-Misc

Anonymous — Wed, 16 Mar 2022 16:12:03 GMT

Thank You Diane,

Yes, very unclear. The question should be worded differently to state that your intent was to have earned income, not that your intention was to earn income. In fact, better to just go with "Was this earned or unearned income". Then add "other" to the list of "unusual circumstances" (though I'd hardly call earning interest unusual). Again, if you use the forms method, it's easy. The "other" checkbox is right where it should be. The walk through just doesn't get you there. It should.