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Level 2
posted Feb 28, 2021 1:23:26 PM

1099-MISC income

I entered 1099-MISC and it is NOT from any employment.  It seems to be a spousal death benefit.  I want it to populate a schedule 1 but it keeps prompting me to a schedule C which is totally inappropriate.  I've deleted and re-entered it several times and tried to answer the questions differently but it always ends up deeming it self employement income.  I

0 5 699
5 Replies
Expert Alumni
Feb 28, 2021 1:41:25 PM

If the payment was an insurance death benefit, it is not taxable.  If it is for something else, to report as "Other Income" in TurboTax, while in your return:.

  • Type "Other Income" in the search window
  • Click on "Jump to Other Income"
  • Enter the information from your Form 1099-MISC, and click on Continue
  • Enter a description and click on Continue
  • On the screen with "Does one of these uncommon situations apply?", indicate "None of these apply"
  • Answer "No..." to "Did the [Description] involve work that's like your main job?"
  • Answer "I got it in 2019" when asked "How often did you get income for [Description]?"
  • Answer "No, it didn't involve an intent to earn money."

The amount will be reported on line 8 of Schedule 1 (Form 1040).

Level 2
Feb 28, 2021 1:51:33 PM

Thank you so much for the information.  I did all the steps but it still takes me to a Schedule C and wants all this information about the employment.  

Employee Tax Expert
Feb 28, 2021 2:08:41 PM

You must answer the questions that follow the entry screen for the 1099-MISC. On the screens that follow, you will also be able to get to the correct screen so the death benefit will not go to self-employment income. 

 

Please follow the instructions below:

  1. Open or continue your return, if you're not already in it.
  2. Search for 1099-misc and select the Jump-to link.
  3. Edit your 1099-MISC.
  4. Continue past the amounts already entered.
  5. Describe the reason for this 1099-MISC as death benefit.
  6. Answer None of these apply on the screen Does one of these uncommon situations apply?
  7. Answer No, it didn't involve work like my main job for the question Did this involve work that's like my main job?
  8. Answer You got it in 2020 for the question How often did you get this income?
  9. Answer No, it didn't involve an intent to earn money for the question Did this involve an intent to earn money?
  10. Answer the remaining on-screen questions.
  11. Your 1099-MISC will flow to Other Income

@dmbenn34

Level 2
Feb 28, 2021 2:22:17 PM

Thank you so much.  This is what I have done every time (probably about 10 times now), and every time it generates a Schedule C when I go to the final check.  Then it wants all this additional information that is totally irrelevant.  

Employee Tax Expert
Feb 28, 2021 2:40:01 PM

If the above steps did not work, then you should try deleting your Schedule C in the interview, as well as the forms that were attached to your return. 

 

To delete, please follow the instructions below:

  1. Open your return in TurboTax.
  2. Search for Schedule C with the magnifying glass tool on the top of the page.
  3. Select the Jump to Schedule C link in the search results.
  4. If you get to a self-employment summary screen, delete the self-employment income line with the trash can icon.
  5. If you get to the question Did you have any self-employment income or expenses? answer No
  6. Click on Tools on the left hand side.
  7. Click on Delete a Form
  8. Scroll down to your forms and look for the self-employment forms (Schedule C, Schedule SE) and click Delete

@dmbenn34