1099 Misc

[Daffy_Duck]

I have retired and as part of my retirement I get In-Lue-of every month. It is reported to me on a 1099 Misc form. I'm not a business but the turbo tax program thinks this money if for a business and want me to fill out a questions that pertain to a business and then a schedule C.  How do I report the income but not as a business? 

[VolvoGirl]

What's the income in lieu of?  Like health insurance?  

[Daffy_Duck]

the in-lue of is for medical benefits. It is cash I receipt each month in retirement.  I no longer work for that company. 

[LindaS5247]

You can report 1099-MISC income that is not self-employment income from a business.  Please follow the steps below.

Go to your Personal Income section of your TurboTax program and select "Ill choose what to work on"

Scroll down to Other Common Income and select to start/update Income from form 1099-MISC. Then click "YES" to indicate you have a 1099-MISC.

It looks like this:

Then enter the 1099-MISC exactly as it is shown, and then select "Continue".

It then asks you to describe the reason for the 1099-MISC, Enter the reason you got this money – such as Medical Benefits, then select "Continue".

It will look like this:

The next screen asks,  "Does one of these uncommon situations apply?"Select  "None of these apply", then select "Continue".

It then asks if "Did the Medical Bemnefits involve work that's like your main job?"Select "No, it didn’t involve work like my main job" and select "Continue".

The next screen will ask you "How often did you get income for Medical Benefits? Select ONLY the tax year for which this specific 1099-MISC was issued, Select the year for which the 1099-MISC was issued. Then select "Continue".

It will look like this:

You will next be asked, "Did the Medical Benefits involve the intent to earn money?"Select No, it didn’t involve an intent to earn money, then select "Continue".

If you have no other 1099-MISC, select "No",

Select "Done".

This should allow you to enter your form 1099-MISC without it being considered business income.

Please feel free to come back to TurboTax Community with additional information or questions or click here for help in contacting Turbo Tax Support.