Nontaxable 1099 Misc

[cmantia2]

I have a 1099  misc for getting a refund on legal fees. I paid my bill and had a issue with the legal firm. They credited their services and refunded me 18,000 of what I previously paid. I entered the 18000 as income, which shows on Sch 1, part 1 on line z. How do I get it to show on part 2 on line z to zero this transaction. Or is there a better way of doing this?  Thank you for your help/

[Critter-3]

Make a negating entry the same way you just did the first entry ... this time call it "refund of fees paid" and put a minus sign in front of the amount.

• Down the left side of the screen, click Federal. (Personal in the H&B version)
• In the center of the screen, click Income & expenses.
• On the screen Your income and expenses, scroll all the way down to the last section, Less Common Income.
• Click the Start or Update button for the last topic, Miscellaneous Income, 1099-A, 1099-C.
• On the next screen, Let's Work on Any Miscellaneous Income, scroll down and click the Start or Update button for the last topic, Other reportable income.
• The next screen asks, Did you receive any other taxable income. Click Yes.
• On the next screen, Other Taxable Income, enter a description and the amount. Click Continue.
• On the next screen click Done.

The income will be reported on Schedule 1 line 8 with the description that you entered. 

[Anonymous_]

Since you have Home & Business, you have the ability to use Forms Mode.

Enter Forms Mode, open your Other Income Statement and add an offsetting transaction (description and figure - see first screenshot).

Your Schedule 1 should then appear (roughly) similar to the second screenshot.

[cmantia2]

Thank you!

[Mike9241]

we are assuming you did not take a tax deduction for the $18K that was refunded