Nontaxable 1099 Misc

Forum|Forum|3 years ago
August 5, 2022
2 replies
0 views

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/

TurboTax Home & Biz Windows

Critter-3

Level 15

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.