1099-MISC

[dsp56]

I received a 1099-misc for reimbursement of job interview expenses.  An amount was entered into box 7 on the form.  I took a job with this company.  Turbo tax is wanting me to file Schedule C for business expenses when I do not have a business.    What is the proper way to show  this amount on the 1099-Misc?

[LinaJ2020]

Here are the steps:

Open up your program,

• At the right upper corner, in the search box, type in "1099misc" and Enter
• Select Jump to 1099misc
• Follow prompts 
• On-screen, "Does one of these uncommon situations apply?"  Select None of these apply
• On-screen, "Did this job involve work that's like your main job?"  Select No
• Next screen, "How often did you get income for this job?"  Only check You got it in 2019
• Next screen, "Did this job involve an intent to earn money?"  Select No

Note that, the job interview reimbursement is not self-employed.  This is a workaround so this income is treated as ordinary income, not self-employed income.  Continue to read for importance:

When you receive a Form 1099-MISC, the IRS will be receiving a copy as well.  Most of the time, IRS treats taxpayers who receive a Form 1099-MISC as business-related thus self-employed.  You are required to pay the self-employed taxes.  If you received this form only once in a while for some work unrelated to your main job, or if you receive it as an award or prize, you would not be treated as self--employed.  If you will be receiving it ongoing in the future, you are self-employed and will need to file a Schedule C.  With that being said, if your employer continues to issue you a Form 1099-MISC for your job, you will be considered as self-employed and required to file a Schedule C to pay self-employed tax.  

[maggiebn]

I'm a life insurance agent and I receive several 1099 misc box 7 (nonemployee income) from the carriers.  Do I enter this in turbo tax under "business income" or "personal income"?  

I also received 1099 box 3 "other income" , does this belong to personal income?  

[AmyC]

@maggiebn All of your box 7 income is considered business income to go on the Schedule C. It goes all together on your one business return. Enter them from inside the business section.

The box 3 is probably personal income and that would not go on the business return. Enter it outside of the business section.