1099-MISC - UAW Legal Services Plan Trust

[jkinley]

Mom received 1099-MISC form for UAW Legal Services Plan Trust. This is considered income for legal services that all UAW employees receive. When I enter this into TurboTax form, it also enters this same item as business income (Form C). The FAQ on the website (https://www.uawlegalservices.com/2020/01/17/answers-to-faqs-about-the-uaw-fca-general-motors-1099-mi...) indicates she does NOT have to file Schedule C. How do I force TurboTax to not do this? What is the workaround?

[SandraStreng]

I'm having the exact same issue.  Please let me know if you figured it out!

[MaryM428]

You will enter the 1099-MISC under Other Common Income

Here are the steps to follow:

Federal

Wages and Income
Other Common Income

Form 1099-MISC

It is not an intent to earn money and does not involve work like main job.

[AJII]

You will need to enter the income under 1099MISC "Other Income".

When you reach the question asking if the benefit has been received in the past and you're asked to select all years that apply, select the current year only, even if the benefit has been received previously.

Then select that the income was not a result of an intent to work.

Otherwise the software will generate a Schedule C and go into "Review" loops trying to apply the income as Self-Employment Income.

[daschicago]

I also have an issue with the UAW-FCA-Ford-General Motors Legal Services Plan Trust 1099-MISC (I am doing the taxes for my mother-in-law). The suggested fixes are not working for me.  I have tried entering the income under <1099-Misc and other Common Income> and as <Less Common Income -->Miscellaneous Income>.

  The software keeps wanting me to enter data for a Schedule C.  If it makes a difference, I am using the Free (Freedom) edition.  I know that I was able to solve this issue last year (using Misc Income/Less Common Income) but this year it is not working.  Any suggestions?

I think I solved it: I used the 1099 Misc Other Common Income section (this is different from last year where I used the Less Common Income/ Misc Income section).  As suggested, I only selected 2020 (even though my MiL has been receiving this income for years)...and I indicated that it was not an intent to work.  Then, when I was finalizing my return and doing the review, it wanted to to review this entry...if you do that you get caught up in the never ending Schedule C loop...so instead I ignored the review and just hit Continue and it appears to have allowed me to file my MiLs federal tax return.

WRONG - I tried to submit the taxes and it took me back to the **bleep** Schedule C review loop...so I am at a loss on how to fix this

[LenaH]

If a Schedule C continues to populate after your enter your 1099-MISC for a lawsuit settlement, it is important that you answer the questions that follow the entry screen for the 1099-MISC. If answered correctly, you will also be able to have this income flow to Other Income will not go to self-employment income. 

I created a mock-up return completing all the steps below and was able to get the 1099-MISC to flow to Other Income, rather than a Schedule C. 

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.
6. Answer This Money Was From a Lawsuit Settlement on the screen Does one of these uncommon situations apply?
7. Answer No, it was not back wages for the next question.
8. Answer No for the question Did you have another 1099-MISC?
9. Your 1099-MISC will flow to Other Income.

Next, please make sure to delete any Schedule C or associated self-employment forms in your return.

1. Search for Schedule C with the magnifying glass tool on the top of the page.
2. Select the Jump to Schedule C link in the search results.
3. Select No to the question Did you have any self-employment income or expenses? 
4. Click on Tools.
5. Click on Delete a Form. 
6. Scroll down to your forms and look for forms you need to remove and click Delete. 

@daschicago

@AJII

@jkinley

[daschicago]

thanks...using Tools to Delete Schedule C enabled me to complete the return

Thanks so much for your help!

[jyjackson8246]

Thank You

Had to delete all 1099-misc forms

Delete 1099-NEC worksheet form

Delete all Sole Proprietor and Business Forms

Did 1099-Misc Form

Tools deleted Schedule C

Worked!!!

Thank You 

[Tsmccaslin]

When you try do do this it requires you to upgrade from free edition

[Tsmccaslin]

Same, hopefully someone has a solution 

[Tsmccaslin]

Having trouble getting to the "enter info" part, keeps jumping to "upgrade" 

[AliciaP1]

Having income from a 1099-MISC disqualifies you from having a Simple Tax Return and you cannot use the free edition.  See if you qualify here.

Once you have upgraded your account, you can enter the 1099-MISC in TurboTax Online by following these steps:

1. Open or continue your return
2. Select Search and search for 1099-misc
3. Select Jump to 1099-misc
4. Answer Yes to Did you get a 1099-MISC?
   • If you already entered a 1099-MISC, on the 1099-MISC Summary screen select Add Another 1099-MISC
5. Enter the info from your form into the corresponding boxes
   • If you need to enter boxes 4–6 or 8–17, select My form has other info in boxes 1–18 to expand the form

@Tsmccaslin