1099 Misc for Best Buy TIN product testing

[etp7]

OK, I am still waiting for my 1099 from Best Buy TIN but have a question?

Supposedly they state the high retail for price of the goods sent for testing. Obviously no one ever pays high retail. Can we claim fair market values instead?

Also if we had to buy additional items to do the test can these be deducted from the total amount and where/what form?

[ReginaM]

No, you can not claim Fair Market Value instead of what is stated on the 1099-Misc being provided to you.  However, as an independent contractor, you are able to claim your business expenses that you incurred through out the year.   See Publication 334 - Business Expense.

To find where to enter your business income and expenses in TurboTax follow these steps:

1. Select Search in the top left of your screen,
2. Click Go to Schedule C,
3. Click Add another line of work,
4. Answer the questions.

[poohkids2]

I too am a Best Buy Product tester and usually in Turbo Tax it just lists the value from #7 on the 1099-Misc in the "Other Income" line.  This year it is telling me that I am self-employed and putting the dollar value in "Business Income and Expenses" and filling out a schedule "C".  I am not in business and not sure why this changed.

SOLUTION FOUND:

Even though you weren't paid in cash you still need to include the "income"(value of goods) on the 1099-MISC in your return. You can enter the 1099-MISC in TurboTax as "Other Common Income,"  which is reported on line 21 of the 1040 and  will not generate SE tax.  Please use the following steps:

1. Click on Federal Taxes > Wages & Income. [In TT Self-Employed:  Personal > Personal Income > I'll choose what I work on.]
2. Scroll down to the Other Common Income section. 
3. Click on the Start/Revisit box next Form 1099-MISC.  [See Screenshot #1, below.]
4. On the screen Did you get a 1099-MISC?  click on the Yes button. [Screenshot #2]
5. On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.
   [Screenshot #3]
6. On the following screens, answer the following questions:

• Did it involve work that's like your main job? No.
• You got it in 2016
• No, it didn't involve an intent to earn money

      7.  Continue through the rest of the interview screens. The income will appear on line 21 of form 1040 (Other Income).