Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
hdmoffat79
New Member

1099 Misc other income - 1 of 8 1099's have other income. I do not run a business. What to do?

I have multiple 1099-Misc for income for mineral royalties in Oklahoma. One 1099 also has a small $ entry (box 3) as 'other income'. When I input this other income it generates a Schedule C, as if I am running a business. I am not. How do I handle this "other income"?"
1 Best answer

Accepted Solutions
KittyM
Level 2

1099 Misc other income - 1 of 8 1099's have other income. I do not run a business. What to do?

For this very reason, a 1099-MISC is supposed to report only one type of income, but you're not likely to get the issuer to give you a new one. To correctly enter the 1099-MISC income so that it does not prompt a Schedule C, we will pretend you received a separate 1099-MISC for this income and take the following steps (the IRS won't care if you do it this way, as long as all the income is on your return.):

  • In your open Federal return, choose the tab for Wages & Income
  • Tab through or down to Other Common Income (Show More) and Start/Revisit Form 1099-MISC
  • Edit the 1099-MISC if you already entered it, or Add it now and enter the information on the form, then Continue.
  • On the screen Describe the reason for this 1099-MISC enter your description:  Other income from Royalty.
  • On the screen Does one of these uncommon situations apply? choose None of these apply.
  • On the screen Did the [Description] involve work that's like [Name's] main job? answer No.
  • On the next screen, choose the year you received the money.  (In this case, 2018.)
  • On the screen Did the [Description] involve an intent to earn money? choose No and complete the interview.



View solution in original post

2 Replies
KittyM
Level 2

1099 Misc other income - 1 of 8 1099's have other income. I do not run a business. What to do?

For this very reason, a 1099-MISC is supposed to report only one type of income, but you're not likely to get the issuer to give you a new one. To correctly enter the 1099-MISC income so that it does not prompt a Schedule C, we will pretend you received a separate 1099-MISC for this income and take the following steps (the IRS won't care if you do it this way, as long as all the income is on your return.):

  • In your open Federal return, choose the tab for Wages & Income
  • Tab through or down to Other Common Income (Show More) and Start/Revisit Form 1099-MISC
  • Edit the 1099-MISC if you already entered it, or Add it now and enter the information on the form, then Continue.
  • On the screen Describe the reason for this 1099-MISC enter your description:  Other income from Royalty.
  • On the screen Does one of these uncommon situations apply? choose None of these apply.
  • On the screen Did the [Description] involve work that's like [Name's] main job? answer No.
  • On the next screen, choose the year you received the money.  (In this case, 2018.)
  • On the screen Did the [Description] involve an intent to earn money? choose No and complete the interview.



Robotdriver
Level 2

1099 Misc other income - 1 of 8 1099's have other income. I do not run a business. What to do?

This worked. I was having the same issue with Other Income from an imputed 1099-misc in Box 3. This kept generating a Schedule C and doubling the amount as a business income. Had to go back and delete several other income entries that were mysteriously created every time I tried to edit the original 1099-misc. Once I did all that and followed the directions here, the entry went in without a hitch.

Thanks!

Dynamic AdsDynamic Ads
Privacy Settings
v