TT Programming Error. I have bond dividend reporting on a 1099-MISC, but TT handles it as Self-Employment creating a Schedule C. How can I stop this?

[bglenn55]

I found this error last year and jumped through all manner of hoops with TT before I found someone who could fix it so I could file an Amended Return.  Now I'm fighting this again as it is forcing me to complete a Schedule C.

[ColeenD3]

To enter a 1099-MISC for miscellaneous income in TurboTax:

1. Open or continue your return
2. Search for 1099-misc and select the Jump-to link

1. Answer Yes to Did you get a 1099-MISC?
   • If you already entered a 1099-MISC, you'll be on the 1099-MISC Summary screen, in which case you'll select Add Another 1099-MISC
   • If you need to edit or delete a previously entered 1099-MISC, select the appropriate button

To exclude it as business income, say NO to the questions regarding the intent to earn money and that it involved work like your main job.

[bglenn55]

I was on with Help Support for over 2 hours with Tech Support pulled in.  We performed various workarounds, loading and deleting forms through various venues. With a Schedule C my Federal Refund was calculating as $1,779.  During a subsequent Federal Review process, we deleted the form in a prompting session and my refund jumped to $2,149.  The form still appeared in the Wage & Income section, so we thought we had resolved it until the Final Review once again prompted for Schedule C information.  Once again, we deleted the form from the Wage & Income session, instead using the "jump" process as is suggested above.  We re-created the form and answered all the Business and "income intent" questions No.  Then a question appeared asking if this income was re-occurring - check prior years when this income was received. 
My bond income is re-occurring, thus I checked all the years listed, but then it registered with me - last year when I was struggling with this same issue without success, the 7th Tech I spoke told me NOT to check the prior years!  The tech said because the program had filed these 1099-MISC in error as Business-related in prior years, by checking the income was reoccurring, this year's program was defaulting this as Business income as well.   GRRRR!!!!
So by going through "jump," answering "No" to all "income earing intent questions" AND INDICATING THE INCOME WAS NOT REOCCURRING,  I finally got  this year's return to correctly accept the 1099-MISC as ordinary Other Income rather than Self-Employment. My refund calcauted as $1,949.
This definitely a programming bug in the software!  I cannot be the only person in the US that is having this issue.  "Normal people"who like me trusted the software and the related filing step assurances from TT technical staff are unwittingly being overtaxed - unless they know how to trick the software.  Unfortunately, since I did not stumble on this glitch until last year, the Turbo Tax software captured this as Self-Employment Income for several years. requiring me to pay Social Security on Bond Dividends.   Now its too late for me to file amended returns to recoup these overpayments, so I'm out about $175/filing.   So is TT ready to pony up to their "guarenateed best refund" and pay me the estimated $1,050 I'm out?
Once again, I begged the Help Support people to escalate this issue and make program modications.  I'm not holding my breath with hopes something might be done, or that TT will make good on their guarantee.  So buyer beware!    ;-(

[bglenn55]

I really wished that it was as simple as you indicate. Several years ago when I questioned this I was given a very similar answer- enter it as a 1099-Misc, then answer all the business-related questions with No. I trusted that advice until last year when I decided to print copies of my forms after I  e-filed and found a Schedule C.  I knew this was in error and I knew I needed to file an Amended Return because so overpaid.  It took 7 TT techs before one figured out how to “trick” the prompting to get the 1099-MISC to post accurately on the my Amended filing. 
This year the prompting was different, but the results were the same - no matter what I did a Schedule C was created causing me to over pay my taxes. I had techs online for 2 hours going through different versions of the same input process before we tricked the software and got it calculate the taxes correctly without a Schedule C. 
I am out about $1.’100 because I unwittingly overpaid taxes for each of several consecutive years.  It is too late to get it refunded from the government. 

[AliciaP1]

You are within the timeframe to amend both returns and report the 1099-MISC income correctly and get your SE tax paid refunded to you.

See How to amend for more information.

@bglenn55