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New Member
posted May 31, 2019 9:46:22 PM

1099 misc box 3, NOT self-employed

State filing:
1.  asking for buisiness id #.  what do i put since i am not self-employed yet i received a 1099 misc with an amount in just box 3?

2. state filing:  asking for business product. what do i put in?
3.  state filing:  asking for business activity. what do i put in?
4.  state filing: asking for hawaii gross receipt. do i put in the amount from box 3 of the 1099 misc form?

0 11 9999
1 Best answer
Alumni
May 31, 2019 9:46:23 PM

 TurboTax (TT) aggressively steers you to self employment*. 

 That said, the key to getting TT to treat it as other income is to follow these steps:

 Enter the 1099-Misc

On the next screen Describe what the payment was for

On the next screen select "none of these apply"

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2016" ONLY (lying to TT to get it to do what you want does not constitute lying to the IRS)

On the next screen select No, it didn't involve intent to earn money

TT will put the amount on line 21 of form 1040 as other income


*The IRS  considers cash income, with or without a 1099-MISC, for work performed, to be self employment income.

 

11 Replies
Alumni
May 31, 2019 9:46:23 PM

 TurboTax (TT) aggressively steers you to self employment*. 

 That said, the key to getting TT to treat it as other income is to follow these steps:

 Enter the 1099-Misc

On the next screen Describe what the payment was for

On the next screen select "none of these apply"

On the next screen select "No it didn't involve work like my main job"

On the next screen select "I got it in 2016" ONLY (lying to TT to get it to do what you want does not constitute lying to the IRS)

On the next screen select No, it didn't involve intent to earn money

TT will put the amount on line 21 of form 1040 as other income


*The IRS  considers cash income, with or without a 1099-MISC, for work performed, to be self employment income.

 

New Member
May 31, 2019 9:46:25 PM

Thanks! When filing with 'State' and it is asking for business id #, business product, and business activities, should i leave all blank or should i put in something (ss# under business id # and such) ?

Alumni
May 31, 2019 9:46:26 PM

Which state? I suggest you ask a fresh question and identify the state. I would think your SS# would be correct.

New Member
May 31, 2019 9:46:28 PM

It doesn't work for me. After clicking "I got it in 2015", it still leads me to answer schedule C (income and expenses) questions.

New Member
May 31, 2019 9:46:32 PM

It's not working on mine. After I click "i got it from 2015" it still leads me to sched C questions (business income and expense).

Alumni
May 31, 2019 9:46:33 PM

Click only that you got it in 2016. Do not check that you got it in 2014, 2015 or expect to get it in 2017

New Member
May 31, 2019 9:46:35 PM

I've done everything as instructed and it still considers this self employment income.  I even deleted and re-entered the 1099 form.  I am stuck.

New Member
May 31, 2019 9:46:36 PM

It works for me now. Thanks! Jeanpanos, Try deleting both the 1099misc and sched C data, Log off and Log back in and enter the 1099 again

New Member
May 31, 2019 9:46:38 PM

Thanks all for your help, but none of this worked.  I finally gave up and started a completely new tax return, entered the 1099 first, and it is not receiving it as self-employment income.  Very frustrating because it is a complex form with rental income and expenses that now have to be entered over again.  Boo TurboTax.

New Member
May 31, 2019 9:46:40 PM

Mine is for reimbursement of student expenses. It's taxing both federal and state, and there's no place for me to enter the expenses, so the reimbursement is being handled as income. How do I fix this?

Alumni
May 31, 2019 9:46:40 PM

If you received a 1099-Misc, with an amount in box 3; IT IS INCOME and should be reported as income. The above discussion is about keeping it from being subject to social security and medicare tax, not income tax.

Although SOME reimbursement MAY be exempt from income tax,  there is a specific way to report it. and a 1099-Misc is not the way. It you paid qualified educational expenses with this "after tax" money you should be able to deduct it or claim an education credit.

Rather than tagging on to an old unrelated post, you should ask a new question, providing more details. Who paid you and why?