1099 MISC

[mzinny]

I have a 1099 MISC from an insurance company for them making my loan payments because I signed up for unemployment insurance.  When trying to file my taxes, the state tax is asking me to fill out information as it is treating it as a business. I entered the information as Other income as I am NOT self employed.  It’s not a business and I’m not self employed.  How do I fix this? 

[LenaH]

Once you enter your 1099-MISC, it is important that you answer the questions that follow the entry screen for the 1099-MISC. If answered correctly, you will also be able to have this income flow to Other Income, rather than self-employment income. 

Please follow the instructions below:

1. Open or continue your return, if you're not already in it.
2. Search for 1099-misc and select the Jump-to link.
3. Edit your 1099-MISC.
4. Continue past the information entered. 
5. Describe the reason for this 1099-MISC.
6. Answer None of these apply on the screen Does one of these uncommon situations apply?
7. Answer No, it didn't involve work like my main job for the question Did this involve work that's like my main job?
8. Answer You got it in 2020 for the question How often did you get this income?
9. Answer No, it didn't involve an intent to earn money for the question Did this involve an intent to earn money?
10. Answer the remaining on-screen questions.
11. Your 1099-MISC will flow to Other Income.

Next, please confirm your 1099-MISC went to Other Income on your 1040.

1. Click on Tax Tools on the left hand side.
2. Click on Tools.
3. Click on View Tax Summary.
4. Click on Preview my 1040 on the left hand side.
5. Search for Schedule 1 - Additional Income & Adjustments to Income.
6. A description of your Other Income and the amount should be listed in Line 8. 

If a Schedule C was populated, please delete any Schedule C forms or associated self-employment forms in your return.

1. Search for Schedule C with the magnifying glass tool on the top of the page.
2. Select the Jump to Schedule C link in the search results.
3. Select No to the question Did you have any self-employment income or expenses? 
4. Click on Tools.
5. Click on Delete a Form. 
6. Scroll down to your forms and look for forms you need to remove and click Delete. 

[mzinny]

Thank you for your reply.  However I am using my IPhone as I do not have a computer and I don’t see the section where you mention “jump to link”?  I have been working on this all week and this time I got through to file and after I paid the fees and scheduled a state tax payment of $43 then it’s asking all this self employment questions.  Can I stop the payment to the state scheduled for today until rectified?

[JotikaT2]

Did you already submit the tax return for filing?  If so, you will need to wait to make any changes or corrections.  

If your return is accepted, you may need to amend your return if the changes affect your overall taxes.

Do I need to amend? 

How to amend my return? 

If your return is not accepted, you will be able to go back into the program and make any changes needed as your return would not have been filed yet.  

If your return is accepted, you cannot stop any payments schedule during the file process as this information is submitted to the state when your return is filed.  You would need to contact the state agency directly to change any payments scheduled.

How to contact your state Department of Revenue

[mzinny]

I did not submit it yet.  However I am using my IPhone as I do not have a computer and I don’t see the section where you mention “jump to link”?  Is this jump feature available on a mobile device?

[JotikaT2]

Since you have not filed yet, you can just log back into the app and make your changes.

If it is not from self-employment, you would enter the information as follows: 

1. Select the Federal section
2. Select Income & Expenses 
3. Go to the  All Income section and select Less Common Income 
4. Select Miscellaneous Income

You will then select Other reportable income to enter your income from your 1099-Misc.  Be sure to mark that it was not earned as part of business.  

Make sure to delete your input in the Self-employed income and expenses section to remove the input there and remove the classification as being income from a business.

You can also use the link below for additional guidance for the mobile app.  Be sure to select the Less Common Income section (instead of the self-employed section) to ensure it is not reported as self-employment income.

Entering 1099-MISC in the mobile app

[mzinny]

When I paid for the TurboTax programs for federal and state I also have it scheduled to pay the state tax, but now I don’t owe anymore. Will that still come out or not anymore?

[JotikaT2]

If you have not submitted the returns to be filed yet, you would not need to enter any payment information unless you owe state taxes on the return when you file it.  

Any information you had entered before should not apply if your tax return has changed.  

The best thing you can do is go through the File section of the program and you will be prompted for payment information or preferences for refunds accordingly based upon your tax returns as they are now prepared based upon the changes made above.

[mzinny]

My State and Federal returns have been accepted!  Thank God!  Thank you for ALL your help.  It was very much appreciated!  Have a good day!