topic 1099-MISC in Business & farm

1099-MISC

RA709 — Tue, 16 Mar 2021 21:07:52 GMT

I received a 1099-MISC from a financial institution where I have an account. The 1099-MISC has other income listed in box 3. I do not own a business and this is interest income from a deposit in my account, not a business. Do I still need to complete a Schedule C? If not, how to I adjust the entries for the 1099-MISC so that Turbo Tax does not trigger a Schedule C?

Re: 1099-MISC

LenaH — Tue, 16 Mar 2021 21:26:59 GMT

No, you do not need a Schedule C. Once you enter your 1099-MISC, it is important that you answer the questions that follow the entry screen for the 1099-MISC. If answered correctly, you will also be able to have this income flow to Other Income, rather than self-employment income.

Please follow the instructions below:

Open or continue your return, if you're not already in it.
Search for 1099-misc and select the Jump-to link.
Enter your 1099-MISC.
Describe the reason for this 1099-MISC.
Answer None of these apply on the screen Does one of these uncommon situations apply?
Answer No, it didn't involve work like my main job for the question Did this involve work that's like my main job?
Answer You got it in 2020 for the question How often did you get this income?
Answer No, it didn't involve an intent to earn money for the question Did this involve an intent to earn money?
Answer the remaining on-screen questions.
Your 1099-MISC will flow to Other Income.

Next, please confirm your 1099-MISC went to Other Income on your 1040.

Click on Tax Tools on the left hand side.
Click on Tools.
Click on View Tax Summary.
Click on Preview my 1040 on the left hand side.
Search for Schedule 1 - Additional Income & Adjustments to Income.
A description of your Other Income and the amount should be listed in Line 8.

Re: 1099-MISC

RA709 — Wed, 17 Mar 2021 17:54:39 GMT

Thank you, that worked.

One issue I found however, is on the page asking "How often did you get income for this reason?" I checked 2020 as you instructed and that worked. But, I will also receive this income in 2021. When I checked the box that said I "intend to get it in 2021" the program created the schedule C and self employment tax computation. As long as I leave that box blank the program works but that is not true as I will get this income in 2021.

Re: 1099-MISC

ColeenD3 — Sat, 20 Mar 2021 15:27:10 GMT

It is fine to leave it blank. When you get it in 2021, you will indicate it then. This is just a fail-safe for people who might need the Schedule C.