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Level 1
posted Feb 12, 2024 2:47:08 AM

COVID-19 Heroes Fund payment on 1099-MISC

Our daughter received a 1099-MISC form with $3000 in Box 3.  She teaches at a day care center, and the money is from the COVID-19 Heroes Fund.  When I enter it in 2023 TT Deluxe, it creates a Schedule C as if she has her own business.  Is this correct?  Is there another way to enter this 1099-MISC income?

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1 Best answer
Expert Alumni
Feb 12, 2024 8:12:26 AM

You have the option to report this as "Other Income" on your tax return. 

  1. Start in Federal Taxes >> Wages & Income >> Other Common Income >> Income From Form 1099-MISC. Click "Start" and work through the interview.
  2. 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."
  3.  Check only the box for 2023 income
  4. 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 8 on Form 1040.

11 Replies
Expert Alumni
Feb 12, 2024 8:12:26 AM

You have the option to report this as "Other Income" on your tax return. 

  1. Start in Federal Taxes >> Wages & Income >> Other Common Income >> Income From Form 1099-MISC. Click "Start" and work through the interview.
  2. 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."
  3.  Check only the box for 2023 income
  4. 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 8 on Form 1040.

Level 2
Feb 20, 2024 8:10:50 PM

When I start the 1099-misc box 1 says rents and my box one on the w2 or the 1099 i received says non-employee compensation and the amount $800. Do I put that amount in Rents box 1?? Doesnt seem right. 

Expert Alumni
Feb 20, 2024 8:30:05 PM

Please clarify, what kind of form do you have (1099-misc or 1099-nec), what box number is the amount in?  And what was the money for?   @Adamsun1 

Level 2
Feb 21, 2024 12:39:54 PM

I apologize. I thought it wouldve been clear on which form because its part of the thread here. So i received a 1099-NEC  which is CT heros pay. I heard we need to file that as 1099-Misc. When I attempted that. Turbotax asks me to fill out the boxes mirroring the tax form. On the website box 1 on 1099 misc says rents. On the 1099-nec box 1 says nonemployee contribution $800. So to sum it up how do I enter this 1099-Nec from Public Partnerships for my CT Hero Pay onto my turbotax?

Expert Alumni
Feb 21, 2024 1:58:59 PM

You enter the Form 1099-NEC in the Other Common Income section of TurboTax and then Income from form 1099-NEC.

When asked, choose the option indicating the money was not earned as an employee or self-employed person and the income will be reported as other income as opposed to self-employment income. @Adamsun1 

 

Level 2
Feb 21, 2024 2:01:28 PM

Okay great. I was going to do that but wasnt sure. Then I started see others write online what they did, and ot confused me. Thank you for your time. 

Level 2
Feb 25, 2024 11:22:59 AM

Whichever way it gets entered it all comes out the same. We get taxed on it no matter what. The State giveth, the State taketh back. They should have taken it out off the top.

New Member
Mar 17, 2024 6:49:16 PM

@ThomasM125 

Thomas,

I am trying to file my 1099-NEC which I received as part of CT Hero pay. The option you have highlighted is no longer an option on TurboTax while filing. All other options are still there. How am I supposed to add my form?

Expert Alumni
Mar 18, 2024 7:31:00 AM

You can try the following steps to enter the Hero Pay:

 

  1. Open your return and click on the Tax Home page on the left menu
  2. Click on Wages and Income
  3. Select Show more income
  4. Scroll down  and select Other Common Income
  5. Go to Form 1099-MISC and click Start
  6. Enter the information from your form 
  7. For the description of the reason for the form enter Hero Pay 
  8. Under the next question for Uncommon situations, select None of these apply
  9. For the question "Did this involve work that's like my main job?" Answer No
  10. And for the next one "Did this involve an intent to earn money?" Answer No

Feel free to reach back if you have any other questions.

 

@racheldroste 

New Member
Mar 18, 2024 7:51:22 AM

@LeticiaF1 

It is not a 1099-MISC, it is a 1099-NEC form so I cannot enter it that way.

Expert Alumni
Mar 18, 2024 9:04:00 AM

Yes, I know, this way the payment will show up as other income on your return, which is the correct way to report it.  It will show up on line 8 of your Form 1040.  

 

@racheldroste