Tax Year Prior to 2020: 1099 Misc

Forum|Forum|6 years ago
February 24, 2020
1 reply
7 views

I received a 1099 Misc for a small amount of money that I receive every month for a Firefighters Retirement Benefit. I entered it as Personal Income but Turbo Tax wants to turn it into a Business and is asking me to complete questions about my "business" and it moves it into the Business area. Is this a glitch or am I missing something?

Not A Product Question

MinhT1

Level 15

If you receive a form 1099-MISC for a retirement benefit, then you are not considered as self-employed and do not need to file a Schedule C.

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2019, not in previous years and not in 2020, you will then have the screen where you can say that it did not involve an intent to earn money.

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PlanetWAuthor

Level 2

Thank you for your reply.

I deleted the 1099-Misc from my business section. I have gone back through and reentered it just under personal income. I did not have a page that said "did this involve an intent to earn money". It did ask "Did [it] involve work like Eric's main job?" to which I answered no. I also took an option to call it a commission, prize, award, etc. from someone who was not Eric's employer (we are self employed). It then tells me Guess what? You can deduct expense for this and puts it under business and charges me self-employment tax. If I just delete it from business and don't go back through the personal part it shows errors when I review.