1099-misc for death Benefit Insurance

[lwflatl]

I received a 1099-Misc for a life insurance death benefit and when I enter it into turbo tax, the software adds payroll taxes to my return.  This is not correct as this is not a business but a life insurance payout.  How do I enter the 1099-misc to avoid this error.

[DianeW777]

Yes you are correct. You should not be paying any payroll taxes on this income.  Delete the 1099-MISC entry and use the steps below to enter this income. Keep the form with your tax files for future use should you need it.

You'll need to delete this form --------------------. 

• If you're using TurboTax Online software and need to delete a form, click here.
• If you're using TurboTax Desktop software and need to delete a form, click here.

Other Miscellaneous Income:

1. Sign into your TurboTax Online account
2. Go to Tax Home (left panel)  Wages and Income  section
3. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
4. Select Other reportable Income > Enter a description (----) and the amount