1099-MISC that is NOT from working

[Pennie52]

For the last 4 years, my husband receives a Christmas bonus check from one of the unions he worked for.  Since this is from the union's bonus fund and not husband's own retirement fund, the union reports it on a 1099 MISC. Every time I enter it, Turbotax keeps treating it like a side job, tries to force me to fill out a schedule C. There is no longer an option that allows me to select "No, it didn’t involve an intent to earn money” and so I am in a never ending circle. Because I am self employed and have a schedule C with a small income, we have in our joint return a 1099 MISC in my name, but TT keeps trying to treat this Christmas bonus as another business, is charging us self-employment tax, etc.  What do I do??? I really need to file taxes and get our refund, and this is getting frustrating. Why is the "not an intent to earn money" option now gone? 

[PattiF]

You can still enter the 1099-MISC as income that is not self-employment income.

Follow these steps in TurboTax Online:

• In the Federal section, under Your income and expenses
• Scroll to Other Common Income
• Select Form 1099-MISC
• Follow the Prompts and enter amount in Box 3, Continue
• Christmas Bonus in Describe the reason for this 1099-MISC box
• Do any of these uncommon situations apply? check last box
• On next page, check No, it didn't involved work like my main job.

[rarussel]

The solution did not work.  It is still treating a retiree bonus as income from a personal business. 

[JillS56]

Make sure when you are entering the 1099-MISC you are not entering it under Self-Employment but are entering it from Other Common Income > Form 1099-MISC > click on "Start" or "Revisit" > click on Add a 1099-MISC  > enter the amount in Box 3 (other income).   If you have gone through these steps which are the same steps as outlined in @pattif12 and it is not working.  I would delete the 1099-MISC and re-enter the 1099-MISC.   I just followed these instructions and it worked for me.  

[Purple Mesa]

I am having the same problem. I deleted everything in the 1099-MISC section (more than once) and followed the direction above but it still keeps being listed as Sole Proprietor Business (income).

A little history: My brother was an insurance salesperson, he died in 2000 and I received his payments and divided them among his two children. They are both in their 40's, one is a cardiac surgeon and the other is in real-estate. The payments finally got small enough they told me to keep it (my name is on the 1099-misc). I used to have a business but got rid of it two years ago and retired. Now every year I have to deal with this and I can't get a straight answer from anyone about how to file this (or if I even need to). Can someone please help?

Thanks 

[PattiF]

You can still enter the 1099-MISC as income that is not self-employment income.

Follow these steps in TurboTax Online:

• In the Federal section, under Your income and expenses
• Scroll to Other Common Income
• Select Form 1099-MISC
• Follow the Prompts and enter amount in Box 3, Continue
•  Describe the reason for this 1099-MISC box
• Do any of these uncommon situations apply? check last box
• Select No, it didn't involve work like my main job on Did the Stuff involve work that's like your main job?
• Answer How often did you get income...Although you may receive this income every year, say that you only receive the 1099-MISC only in 2022, not in previous years and not in 2023, you will then have the screen where you can say that it did not involve an intent to earn money.
• Select No on Did the Stuff involve an intent to earn money?

[MrBerater]

EDIT: Nevermind, issue is solved.

[Purple Mesa]

This worked! Thanks.

[Pacman45]

The only way I could clear this error was to go into Forms and delete Schedule C.  Since I had no other self-employment income, this was an easy fix.  BUT, Turbo Tax has to do a better job with the logic around this coding.  It is unacceptable that this can't be solved through Step by Step.

[Lorac]

Deleting the Schedule C was a "genius" solution.  Thank you so much!