1099-MISC income showing as Business income

FB01 · ‎February 14, 2023

Hello,

I got promotion bonus of $1000 for opening an account and I was sent 1099-MISC by that firm. Once I enter the income in 1099-MISC, I see that amount gets populated under "Business Items" and I do not have any business. It is asking me to enter "principal business code" in Schedule C which I do not have

What should I do avoid this?

-JR

PatriciaV · ‎February 14, 2023

Since this is one-time income not related to your job, report the 1099-MISC income as "sporadic." During the 1099-MISC interview on a page asking "Did [income] involve work that's like your main job?" answer "no." Check the box for "I got it in 2022." on the next page, then "No, it didn't involve an intent to earn money" on the final page.

These answers will report this as Other Income and not on Schedule C.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

PatriciaV · ‎February 14, 2023

Since this is one-time income not related to your job, report the 1099-MISC income as "sporadic." During the 1099-MISC interview on a page asking "Did [income] involve work that's like your main job?" answer "no." Check the box for "I got it in 2022." on the next page, then "No, it didn't involve an intent to earn money" on the final page.

These answers will report this as Other Income and not on Schedule C.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

FB01 · ‎February 14, 2023

Thank you Patricia for your quick reply. It solved the issue.

Much appreciated

-JR

Expert does your taxes

Do it yourself

Resources

Support

1099-MISC income showing as Business income