1099-misc

[bears31]

When I was entering a 1099-misc for a work related contest winning it stated that I maybe able to deduct a portion of that, but it was never addressed during my walk thru deductions. Did I miss something?

[DawnC]

They only way you would be allowed to claim deductions against the income is if it was considered self-employment and reported on a Schedule C.  If the income was reported as prize-winnings, it would be classified as Other Income and not eligible to be reduced by any deductions.  

[Opus 17]

You will need to provide more information about who actually paid the money and what you did to get it. 

If your employer paid you a bonus, they are supposed to report it on your W-2.  There is a form you can file in turbotax to fix this (not self-employment schedule C) but you can't deduct any expenses.  But it would be better to have your employer fix your W-2.

If the prize was awarded by a third party, then it might be compensation for work performed or it might be a prize.  Prizes are not subject to the extra 15% self-employment tax but you can't deduct expenses.  Compensation for work or services would be reported on schedule C and you can deduct expenses but you pay extra tax on the net profit.  And just because the money might have been listed in box 7 of the 1099-MISC doesn't mean you must report it as compensation...it depends on what you actually did to get the money.

[Hal_Al]

The fact that TT said you may be able to deduct expenses probably means TT has classified the income as self employment.

After completing the 1099-Misc interview, you need to initiate the business interview. 

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

Scroll down to:

- Business Items

   - Business Income & Expenses (Sch C)