Hi there!
I am currently trying to complete my state taxes (PA). At the Compensation Summery when TurboTax imports your incomes and wages from the Federal return, it appears it did not bring over my 1099 misc income from AmeriCorps. I tried to add it under the Miscellaneous compensation section of the state return, but in the process of doing that, it ended up taking me to a page where I have to fill out information about "my business". I don't have a business, this was earned scholarship money for college that I redeemed this past year that I now more than likely need to pay state taxes on. I'm curious to discover the proper way to add this 1099 misc income into the state return portion of TurboTax. Guidance on this matter would be greatly appreciated!
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Back when you entered your 1099-MISC in TurboTax, there were probably several questions in the screens that followed.
One was "Did this involve work that's like [name]'s main job?". You should have answered No.
Then the next question is "did this work involve an intent to earn money?" Again, you should answer No.
After this, you should not get any more questions about a business.
The only thing that concerns me is "this was earned scholarship money for college "...are you saying that you worked for this money? If so, please explain.
Thank you for the reply.
I was part of several internships through the Student Conservation Association and the Virginia State Parks, where you worked for a set amount of hours over the course of 6 to 8 months, to receive the scholarship money. You only got living stipends during the program, so it was not a job where you earned a wage.
Based on your additional information about internship through the Student Conservation Association and the Virginia State Parks this would be considered a stipend. You can follow the steps provided by @BillM223 and placed here for you as well.
his income is not business income, rather miscellaneous as indicated by your Form 1099-MISC. It's your money making money for you and not because of a service you performed.
It's important for you to select 'None of these apply" and then you should also select the following:
'No' on the screen 'Did the '____' involve work that's like your main job?'
'No' on the screen 'Did the '____' involve an intent to earn money?'
This will report the income without any business activity and it will show up on Form 1040, Line 8 (From Schedule 1, Line 8z).
Checkout your tax return using the steps below after your entry.
For TurboTax Desktop, change to 'Forms' and review the forms
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