topic 1099-misc in Deductions & credits

1099-misc

bears31 — Fri, 28 Feb 2020 20:00:35 GMT

When I was entering a 1099-misc for a work related contest winning it stated that I maybe able to deduct a portion of that, but it was never addressed during my walk thru deductions. Did I miss something?

Re: 1099-misc

DawnC — Fri, 28 Feb 2020 20:25:28 GMT

They only way you would be allowed to claim deductions against the income is if it was considered self-employment and reported on a Schedule C. If the income was reported as prize-winnings, it would be classified as Other Income and not eligible to be reduced by any deductions.

Re: 1099-misc

Opus 17 — Fri, 28 Feb 2020 20:56:56 GMT

You will need to provide more information about who actually paid the money and what you did to get it.

If your employer paid you a bonus, they are supposed to report it on your W-2. There is a form you can file in turbotax to fix this (not self-employment schedule C) but you can't deduct any expenses. But it would be better to have your employer fix your W-2.

If the prize was awarded by a third party, then it might be compensation for work performed or it might be a prize. Prizes are not subject to the extra 15% self-employment tax but you can't deduct expenses. Compensation for work or services would be reported on schedule C and you can deduct expenses but you pay extra tax on the net profit. And just because the money might have been listed in box 7 of the 1099-MISC doesn't mean you must report it as compensation...it depends on what you actually did to get the money.

Re: 1099-misc

Hal_Al — Fri, 28 Feb 2020 21:37:23 GMT

The fact that TT said you may be able to deduct expenses probably means TT has classified the income as self employment.

After completing the 1099-Misc interview, you need to initiate the business interview.

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)

- Wages & Income

Scroll down to:

- Business Items

- Business Income & Expenses (Sch C)