1099-Misc Confusion

[ErictheK]

I followed exactly the steps you described above when I tried to enter a 1099-MISC for an MLP ETN but, instead of reporting it as "Other income", it populated the Schedule C line in the worksheet, generated a Schedule C and calculated and deducted self-employment tax.  The only way I could get around that was to manually adjust the 1099 worksheet in Forms.

[Roughhouse369]

How can I get my fein number

[DoninGA]

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@Roughhouse369 wrote:

How can I get my fein number

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Your FEIN?  That would have been issued to you by the IRS after you applied for an EIN so only you would know your FEIN - https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

[teshmi]

I took a buy out from my company 2 years ago. One of the benefits was giving me $3600 to offset medical expenses.in 2020. It is on the 1099 Misc rather than my W2. No matter what I try to do, I either get that I am on Schedule C as a business (I am not) or if I try to put it as other income it says NOT to put in amounts on 1099-MISC. I am lost..

[DianeW777]

This income can be filed as other income by using the steps below. It's part of the buy out settlement.

1. Scroll down the page to the last section titled: Less common Income and click show more;
2. Select start or update next to the last topic titled Miscellaneous Income, 1099-A, 1099-C;
3. Scroll down to the last option titled Other reportable income and select start or edit;
4. When it asks, "Any other reportable income?" say yes then you will make one entry
5. Enter this description: Medical Expense Offset > Enter the amount

This will carry the income to the Form 1040.

[teshmi]

Thank you! I did that but then it reduced my refund by over $800. Does that seem appropriate for that small an amount?

[DMarkM1]

It depends on your tax bracket.  If you are filing single with income between approximately $40,000 and $85,000, you are in the 22% tax bracket.  The 22% tax on $3600 is $800.

[teshmi]

Married filing jointly - taxable $26600 (includes the 3600) puts us in the 12%.

But I had entered everything in TT to that point and when I added the 3600 it decreased our refund by $804. Does that make any sense?

[AmyC]

The Earned Income Credit would have decreased with the additional income. For 3 kids the change would be $769 less credit, less refund.

EIC for 1,2,or 3  kids

$30,200 EIC of  2784, 4866, 5606

$26,600 EIC of 3367, 5635, 6375

@teshmi

[teshmi]

Thanks, no EIC here. The end result is correct, I just can't seem to recreate why TT changed the total by that much as soon as I entered that 3600. Just seemed like a big jump to go down over $800,

I guess it will just have to remain a mystery. Like I said, the end result is correct, so I will just file it that way.

Thanks everyone for your attempts to solve the great mystery...I sure wish it would have stayed that high though!

[WendyN2]

Don't we all! Thank you for thanking the community!

[7183528605]

I received an Volunteer EMS pension in a 1099-MISC and followed the suggestions. I am still getting a schedule C. How do I correct this?

[DianeW777]

Retirement is not self employment income and even though it is reported on a Form 1099-MISC it can be reported using the following steps so that it is taxed once and will not include a Schedule C in your return.  

1. Enter the 1099-MISC in the Other Common Income section Search (upper right) then type 1099misc > enter > Click the Jump to ... 
2. For the description, enter  "EMS Retirement Benefits", that it does not involve work like your main job, and that it did not involve an intent to make money, is not a recurring payment (received in the past or expected in the future).
3. Yes, it may be recurring but this is the proper way to report 1099-MISC "retirement payments" without having it treated as self-employment/business income.
4. To remove the Schedule C go to the Search (upper right) then type schedule c > enter > Click the Jump to ... > click the trash can to delete.

@7183528605

[7183528605]

I have done all that now when I try to efile, it's asking me to check box 3 on the 1099-misc,, any options has me paying more taxes as if I have a schedule 3, please advise

[JamesG1]

Try reporting this income that is not reported as self-employment income through Less Common Income.

• Select Federal from the left side menu.
• Click on Wages & Income.
• Scroll down to Less Common Income.  Click Show more.
• Click Start / Revisit to the right of Miscellaneous income….
• Click Start / Revisit to the right of Other reportable income.
• At the screen Other Taxable Income enter the description of the income. 

View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.

The income will be listed on line 8z of the Schedule 1 Additional Income and Adjustments to Income and line 8 of the Federal 1040 tax return.

@7183528605