TurboTax wants me to add a Principal Business code for my child's FFA project

[TXcrude]

TurboTax wants me to add a Principal Business code for my child's FFA project but that wasn't a business.

She received a 1099-MISC from the school district for the proceeds from the sale of the animal and the add-ons (donations). That's not a business.

PS: She had a net loss from the FFA project.

[JulieS]

No, that is not a business. You can add the 1099-MISC to your daughter's tax return, but you have answer the questions carefully to avoid the program assuming it is a business.

First, delete the business forms from your return:

1. Open your return in TurboTax.
2. Select Deductions & Credits.
3. In the left-side menu, select Tax Tools, then Tools.
4. Select Delete a form, from the list in the pop-up window. 
5. Check the list for Form 1099-MISC, Schedule C, Schedule C-EZ, and Schedule SE. If you have any of these forms in your return, select Delete next to the form.
6. Confirm your Delete, select Continue. 
7. If you are filing a state tax return, check under your state for Schedule C as well. 
8. Repeat until all self-employment forms are deleted, then Continue with my return.
    

Next, enter the 1099-MISC:

1. Select Income & Expenses from the left-side menu.
2. Select Edit to the right of Income from Form 1099-MISC.
3. Select + Add a 1099-MISC.
4. Enter the information from your 1099-MISC, select Continue.
5. Enter "FFA project" for the description on Describe the reason for this 1099-MISC, select Continue.
6. Select None of these apply and Continue.
7. Select No, it didn't involve work like my main job, select Continue.
8. On the screen, How often did you get income for FFA project? select I got it in 2023 only. Select Continue.
9. Select No, it didn't involve an intent to make money, select Continue.
10. Answer No to the last question and select Continue. 
     

[TXcrude]

ok, I did that and now it says she owes $101 instead of $200.

She had a net loss just from the purchase of  the animal and feed alone, not counting mileage to/from the barn, multiple livestock shows, etc.

Income: $1,412   Expenses: $2,487.60   Net Loss: $1,075

Since it is NOT a business I can't claim expenses, which means I probably need to file this return by mail and add a letter and other supporting information.

It is ridiculous that I have to spend a couple of hours and something that should be a simple return.

[Pacman45]

I followed these instructions, but each time I do a Review at the end, Turbo Tax keeps asking me for a Business Code.  My 1099-Misc is for Loyalty Awards for purchasing a certain amount of product throughout the year.  Please help me reconcile this.  I am at the point of leaving the 1099-Misc off of Turbo Tax and just placing the income into "Other Income."

[LindaS5247]

The principal industry codes are listed in this Instruction for Schedule C's, on pages 18-20. Please click here.

You could use code: 999000 for "unclassified".

Or this may fit depending on your circumstances:

NAICS Code 541613-10 Description (8-Digit)

Customer Loyalty Programs & Service is a subdivision of Marketing Consulting Services that focuses on creating and implementing strategies to retain customers and increase their loyalty to a brand or company. This industry involves analyzing customer behavior and preferences to develop personalized programs that incentivize customers to continue doing business with a company. Customer Loyalty Programs & Service also includes providing exceptional customer service to ensure customer satisfaction and loyalty.

Generally, a 1099-MISC with income reported in box 3 or 7 is considered self-employment income as far as the IRS is concerned. But there are some exceptions.

To report 1099-MISC (box 3 or box 7) that is not self-employment income:

1. Under the "Wages & Income" tab (or the Personal Income tab) scroll down to "Other Common Income" and select to start or edit Income from form 1099-MISC. 
2. Select "YES" to indicate you have a 1099-MISC
3. Enter the 1099-MISC exactly as shown
4. Select "Continue"
5. Enter the reason you got this money, such as "Loyalty Rewards" –
6. Select "Continue"
7. Select "None of these apply", then 
8. Select "Continue"
9. Select "No, it didn’t involve work"
10. Select "Continue"
11. Select "No, it didn’t involve an intent to earn money"
12. Select "Continue"
13. Select "No", then 
14. Select "Continue"
15. Click the DONE button.

Please feel free to come back to TurboTax Community with additional information or questions or click here for help in contacting Turbo Tax Support.