CA Waiting Penalty Pay

[roones3]

I goy a 1099-MISC for getting the Waiting Penalty Pay.

As a prior post suggested:

The IRS does not consider California Wait Time Penalties to be WAGES, so you don't have to pay Social Security or Medicare taxes on it.  But it is still income and you do need to include it on your taxes.

Go to the wages and income section and scroll down to the 1099-MISC section and enter it there.  Just remember - the form did not involve work like your main job and it did not involve an attempt to earn money and you'll be all set.

I did say it did not involve work and no attempt to earn money.

But the Smart Check is complaining and wanting me to fill in Schedule C info, such as "Enter Principal Business Code"

How can I get this done with?

[JohnW152]

To enter your California Wait Time Penalties from Form 1099-MISC in TurboTax Online: 

1. Open TurboTax Online
2. Select  Tax Home in the left pane
3. Select the dropdown to the right of Wages & Income
4. Select  Pick up where you left off, Review/Edit or the edit pencil
5. On the Great! We've got your income info page, select the dropdown to the right of Other Common Income -- Tax refunds, 1099-G, 1099-NEC, 1099-MISC, 1099-K
6. Select Start to the right of Form 1099-MISC
7. Select Yes on the Did you get a 1099-MISC? page
8. Enter the information from your 1099-MISC on the Let's enter the income from your 1099-MISC page, then select Continue
9. On the Describe the reason for this 1099-MISC screen, enter California Wait Time Penalties, then select Continue
10. On the Do one of these uncommon situations apply? screen, select the bullet next to None of these apply, then select Continue
11. On the Did the California Wait Time Penalties involve work that's like [your] main job? page, select the bullet next to No, it didn't involve work like [your] main job, then select Continue
12. On the How often did [you] get income for California Wait Time Penalties? page, answer appropriately, then select Continue
13. On the California Wait Time Penalties involve an intent to earn money? page, select the bullet next to No, it didn't involve an intent to earn money.  This indicates to the program that this wasn't self-employment income, so self-employment tax won't be triggered.  Select Continue
14. On the Your 1099-MISC summary page, select Done, unless you have more Forms 1099-MISC to enter

You should be able to remove your previously-entered information after Step 7, above.

If the TurboTax Online navigation described above doesn't look like what you're experiencing, see the TurboTax Help article Why does the TurboTax navigation menu look different for me?.

See also Waiting time penalty.