1099-Misc

[Scubasammy78]

My son worked at Americorp for two years and received "credits" which could be applied to higher education.  He attends college and Americorp pays for the classes.  He receives a 1099-Misc for the income and I'm having a hard time entering the information in turbotax.  The system wants to apply the amount as self employment income and require additional business expense reporting.  Can someone tell me what to do to have the income reported properly?

[LenaH · Accepted solution]

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. Click Edit next to the 1099-MISC.
4. Describe the reason for this 1099-MISC.
5. Answer None of these apply on the screen Does one of these uncommon situations apply?
6. Answer No, it didn't involve work like my main job for the question Did this involve work that's like my main job?
7. Answer You got it in 2020 for the question How often did you get this income?
8. Answer No, it didn't involve an intent to earn money for the question Did this involve an intent to earn money?
9. Answer the remaining on-screen questions.
10. 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 (Schedule C/Schedule SE) and click Delete.