Tax Year Prior to 2020: 1099-Misc

Forum|Forum|6 years ago
February 13, 2020
1 reply
8 views

My husband has a 1099-Misc (a bonus for selling a specific product). This 1099 is from the company that makes the product. This bonus is earned during the course of my husband's regular job. When I put this 1099-Misc info into Turbo Tax, it assumes he has his own business, which is not the case. Turbo Tax wants to fill out a schedule C on my husband. How can we enter this info correctly?

TomK2023

Level 15

You can report it as other income on Form 1040 line 21. Here's how to enter it in TurboTax.

Click the Federal Taxes tab (Personal in the Home & Business version)
Click Wages & Income. (Personal income in the H & B version)
Click "I'll choose what I work on."
On the screen "Your 2019 Income Summary," scroll all the way down to the last section, "Less Common Income."
Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."
The next screen asks, "Did you receive any other taxable income." Click Yes.
On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.
On the next screen click Done.

The income will be reported on Form 1040 line 21 with the description that you entered.

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Pfieff

Level 2

TomK100, will this raise any flags because the income came on a 1099-MISC? I am in a similar situation and when I originally put the income in under the 1099-MISC section compared to where you suggested my return amount changed?

pk_

Level 15

@Pfieff @warthpeggy @jminyard , I agree with the answer by @WillK ONLY if the amount is shown on the 1099-MISC as "other income " in Box 3. In any other box , it needs to be handled per the category shown --- the AUR system ( Automatic Under-Reporter ) compares incomes by category. Need to be sure that this is indeed 'Other" income . Note that Non-Employee income is subject to SECA taxes ( 15.3% of 92 % of the net income ) Schedule-C and Schedule-SE

See below -->

https://www.irs.gov/faqs/interest-dividends-other-types-of-income/1099-misc-independent-contractors-and-self-employed/1099-misc-independent-contractors-and-self-employed-1