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New Member
posted Feb 19, 2024 5:29:32 PM

I received a 1099-MISC from Coinbase. I input the information into the 1099-MISC section in TurboTax but it moves it to Schedule C. How do I prevent this?

This is not self-employment or a sole proprietorship.  It likely was rewards from cryptocurrency.

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2 Replies
Expert Alumni
Feb 20, 2024 7:48:35 AM

Form 1099-MISC is issued to indicate total miscellaneous income. It's used by some cryptocurrency platforms to indicate other income of more than $600, from cryptocurrency staking, rewards and other sources of income.

 

Follow these steps to enter your 1099-MISC in TurboTax Online:

  1. Open or continue your return.
  2. Go to Federal, then Wages & Income.
  3. Under Other Common Income, select Start or Revisit next to Form 1099-MISC.
  4. Enter your 1099-MISC info on the Let's get the info from your 1099-MISC screen and Continue.
    1. If you’re editing a 1099-MISC you already entered, select Edit next to your form.
  5. On the Describe the reason for this 1099-MISC screen, enter crypto investment other income.
  6. Select None of these apply on the Does one of these uncommon situations apply? screen.
  7. Select No it didn’t involve work like my day job on the Did the involve work that's like your main job? screen.
  8. Select I got it in 2023 on the How often did you get income for? screen.
  9. Select No it didn’t involve intent to earn money on the Did the involve an intent to earn money? screen.
    1. Even though staking and earning crypto interest/rewards may earn you money, you need to select No here because this investment income isn’t subject to self-employment taxes.
  10. Select No on the Do you have another 1099-MISC? screen.

Level 1
Apr 6, 2024 4:14:41 PM