Miscellaneous Income

[veteran007]

I received a 2022 Supplemental Tax Reporting Statement from Merrill. They reported “Expenses Not Subject To 2%”. I had income for Royalties and I don’t know where to put expenses such as Administrative and Severance on my return? I thought it might be Miscellaneous Expenses but I’m not sure. 

[GeorgeM777 · Accepted solution]

Yes, you can enter the Administrative and Severance expense in the category of Miscellaneous Expenses.   The royalty income and expenses should be entered under the category Rentals, Royalties, and Farm (TurboTax online) or Rental Properties and Royalties (TurboTax CD/download). The expenses associated with your Royalty income should appear in Part 1 of Schedule E, Supplemental Income and Loss. 

[veteran007]

Yes, this did answer my question. Thanks

[veteran007]

Mark, I have a question on State returns. I understand that under the Federal return there is no allowance for scams by unscrupulous persons. But under the State returns it may be allowable. Scams from domestic and international sources have had an effect on me last year and I want to know that in the State returns it is acceptable to report it that way. I live in California and I want to know if I can deduct  funds I sent to international scammers. This has been reported to the FBI on the ic3.gov form recently. Anthony 

[veteran007]

I was scammed last year and the year before by persons in Russia. The amount was significant between $200-$300,000. I admit they were smarter than me and there was no indication that I was being scammed. I have already reported this to the FBI on their online form ic3.gov. I’m a senior citizen over 70. Is it true that on the State form, I can claim what I paid last year to them? Is there a maximum amount that I can report? Is there a rollover that can be applied to future years. Based on income, I have taxes to pay on interest and dividends received and would the State just max out to what I have to pay or reduce my tax burden down to zero? I live in California and it’s the Franchise Tax Board. 

[veteran007]

I’m on Schedule E and under Income there is property B. I tried to open or tag lines 5 thru 19 but none of them opens up to enter these expenses for Severance and Administrative. They and all lines are blocked. Secondly, there are no specific line items for these two. Could it be that in lines A is checked NO and B has no checks in A or B. These expenses are from common stock that I purchased thru my Brokerage account. Something needs to be unlocked on this page so that I can add these expenses. 

[veteran007]

Sorry George M, I got confused with someone else’s name. The issue here is that Schedule E is frozen or blocked and I can’t open it up to enter the two expenses. How do I unlock it? I can’t enter any expenses in lines 5 thru 19 and secondly under line 19 there are empty lines but they also are blocked. In A above NO is checked and B is unchecked for A and B. What can I do to unlock this page. 

[veteran007]

Hi George— 

Did you get my message from yesterday regarding the posting to Schedule E and how it was block from adding the two expenses? Do you know how to unblock it? Anthony 

[veteran007]

Hi GeorgeM777-

Thank you for your response to the issue of Miscellaneous Income. It seems that using Turbo Tax Deluxe doesn’t work to open up Schedule E in adding two expenses not subject to the 2%. How can I complete this schedule without not going thru Premier? Any ideas? I only have a week before the returns are due. Anthony 

[AbrahamT]

Here's what you do

Type in 1099misc in the search bar

then Jump to

then you will go through the input indicating that this is a rental property

 

then to this screen

In the Rental and Royalties section is where you will enter these expenses like this

Go through the input until you get to this screen

Good luck!  I hope this works for you. 

[veteran007]

Your suggestion worked, thank you. I have another issue but I’m not certain if you can respond in time before next Tuesday final day.  It wasn’t until a few weeks ago, I learned that I was set up or taken advantage as a senior citizen, with funds sent to another country by unscrupulous persons, in other words I was scammed and the amount significant. I was reading the section on Casualties and Thefts. Could this section be used to declare the theft of my funds. Recently, I informed the FBI of this scam as was directed to me by the DOJ’s senior hotline (over 76) to report the incident under the FBI’s ic3.gov web site. Since this matter is international in scope, the local authorities may not be the best use of their time and searching for scammers in another country. Since these assets are taxable could I not declare my losses for 2022 as a theft deduction? I am aware that thefts, according to the reading, does not strike at this kind of theft, but it could be labeled as “Extortion Embezzlement or even Blackmail” The last line in the explanation states that “the taking of money or property through fraud or misrepresentation if it’s illegal under state or local law”. The extortion in this case is holding out potential assets for recovery by soliciting more money from me.