1099-Misc for MN one-time tax rebate

[Sadie1516]

Entered the 1099-Misc Minnesota one-time tax rebate into our Federal and when get through entering it wants a principle business code for payer, the state of MN has a 7digit state payer's number in box 17 of the 1099-Misc form but the Federal form only wants a 6-digit number. Any help appreciated. 

[MarilynG1]

TurboTax is treating your 1099-MISC as self-employment income, and is asking for your Business Code to report the income on Schedule C. 

To report this is a one-time payment, go back to your 1099-MISC entry and Edit it.  You can type '1099-MISC' in the Search area, then 'Jump to 1099-misc' to get to the 1099-Misc Summary page to do this.

On the page 'Do any of these uncommon situations apply?' choose None.  

Then choose, 'No, it didn't involve work like main job', received it in 2023, and 'No, didn't involve intent to earn money'.

This will report the income under Miscellaneous Income.

@Sadie1516 

[Sadie1516]

Thanks for the info but this did not solve the issue, it still wants a 6-digit number for payer.

[Sadie1516]

What we aren't able to do is move forward after entering the 1099-misc (one time MN tax rebate) as TurboTax gives us a message stating that we have 3 errors the first being that it wants a 6-digit Principle Business code between [phone number removed]00.  Our 1099-misc has a 7-digit code under box 17-State/Payer's state no. which is 9000001.  Wondering if we should just leave off the "9" as the other 6 numbers seem to correlate. Thanks! 

[JamesG1]

Changing the code may help but it sounds like you need to remove the self-employment activity from your tax return.

The Minnesota payments are taxable income on the Federal 1040 tax return but not subject to self-employment income.

Remove the self-employment income and re-enter the IRS form 1099-MISC as described below.  In TurboTax Online, remove the self-employment activity by:

• Down the left side of the screen, click on Tax Tools.
• Click on Tools.
• Click on Delete a form.
• Find the self-employment form(s) listed and click Delete to the right.

Information on the Minnesota Direct Tax Rebate Payments may be found here.

The payment is not taxable income on the Minnesota state income tax return.  Follow these steps to report the payment reported on IRS form 1099-MISC.

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Wages & Income.
• Click Show more to the right of Less Common Income.
• Select Miscellaneous Income, 1099-A.
• Select Other reportable Income.
• As a description enter MN Direct Tax Rebate Payment.

In the Minnesota tax return, remove the income at the screen Minnesota Tax Rebate Payment.

@Sadie1516 

[Sadie1516]

Thank you deleting the form solved the issue, appreciate the help! 

[BRINQUEDO651]

I formerly used 1040EZ which means currently I use the 1040 without any deductions, special financial cases, investments, child credits, education credits, military credits. loss of my soul credits, anything....  But for this one time Minnesota One-Time Tax Rebate Payment that must be reported otherwise you can't move forward on other parts of the tax process I HAVE to sign up for the Deluxe and pay $59?!  For services I don't need!!!  It would be less underhanded to simply charge a fee instead of having a (former as of now) customer spend  time filling out the form only in the end find out that what is needed is not free afterall!!!

You also neglect to mention having to subscribe to Deluxe in your instructions.

I understand why the reddit community is against TurboTax.