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1099-MISC other income

Got a 1099-MISC for a legal services plan for $26.00. I entered the information. $26.00 in Other Income in Box 3. Said no to all the other questions. Smart Check show 10 errors about this income. The 1st error wants a principal business code. 2nd wants a business name and address. Then accounting method. It just gets worse from there. There are no answers for each of these questions as I am not a business or actively involved in making money as this is a benefit that is taxable. This happens nearly every year and there seems to be a different answer or work around every year for something as simple for imputed income for a taxable benefit.

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2 Replies
CatinaT1
Employee Tax Expert

1099-MISC other income

Delete the 1099-Misc and enter it using the steps below so it does not think it is self-employment income. 

 

Take the following steps:  

  1. Sign in to TurboTax Online, click Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer); 
  2. Click on Federal Taxes at the top of the screen;  
  3. Scroll down the page to the last section titled: 1099-Misc and Other Common Income
  4. Select start or update next to the topic titled Income from Form 1099-Misc
  5. Answer Yes, to the questions Did you get a 1099-Misc?;
  6. Enter the information from your 1099-Misc;
  7. Enter legal services plan for a reason for the 1099-Misc;
  8. You will then be asked if you perform a service to earn the money, say No.

 

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1099-MISC other income

Thanks,

Looked back into a previous year answer that worked and found out it still worked.

I had to delete the both the 1099-MISC information and the Schedule 1 form and go back and enter the 1099-MISC following the instructions similar to your answer. It worked and I have no errors on my Smart Check. 

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