1099-Misc Income is equal to federal w/h and Turbotax wont let me file because of it

As part of New York Family Leave I was paid $3000 on a 1099-Misc. In error, the company withheld all of my payment as federal income tax. Hence my 1099-Misc reports:

Other Income: $3000

Federal income tax withheld: $3000

Turbotax Online Premium wont let me file because as part of its checking process it says "Form 1099-MISC Worksheet (company name): Box 4 federal tax w/h should be less than the income reported on this 1099-MISC"

This seems to be a bug in the software. Your help on how to get around this would be greatly appreciated.

1030

1 Best answer

Level 15

Mar 17, 2024 2:25:57 PM

Change the income amount to $3,001, OR change the tax withheld to $2,999.

Level 15

Mar 17, 2024 2:25:57 PM

Change the income amount to $3,001, OR change the tax withheld to $2,999.

Level 2

Mar 17, 2024 2:29:26 PM

Thanks for the response. Will that not trigger something at the IRS because the numbers reported dont match the form?

Level 15

Mar 17, 2024 3:19:21 PM

The IRS doesn't bother with $1 discrepancies. And they will not complain if you report more income that what the form shows.

Why sign in to the Community?

1099-Misc Income is equal to federal w/h and Turbotax wont let me file because of it