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Level 2
April 4, 2020
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1099-Misc

  • April 4, 2020
  • 1 reply
  • 8 views

My husband received a monthly disability benefit from his annuity in 2019 so he received a 1099-Misc to report the income.  Turbo Tax is throwing it to a Schedule C as a business income and wants the business activity code for this.  Is this correct?  Should this be on a Schedule C when it's not a business?

    Best answer by KarenM90

    Assuming the payments are showing in box 3 "Other Income" on your 1099-Misc, on the "Income & Expenses" tab scroll down to "Other Common Income"

     

    1.  Identify as Short-term disability

    2.  Enter as "not your main job"

    3.  You didn't do this "to earn money" 

    4.  You "received in 2019"  

     

    Following these steps, this should not show up in self-employment.  

     

    If this is not the case, please clarify how this income is reported to you.

     

    Here is a link from IRS with more information regarding disability payments:  Disability Payments

     

    1 reply

    KarenM90Answer
    Level 11
    April 4, 2020

    Assuming the payments are showing in box 3 "Other Income" on your 1099-Misc, on the "Income & Expenses" tab scroll down to "Other Common Income"

     

    1.  Identify as Short-term disability

    2.  Enter as "not your main job"

    3.  You didn't do this "to earn money" 

    4.  You "received in 2019"  

     

    Following these steps, this should not show up in self-employment.  

     

    If this is not the case, please clarify how this income is reported to you.

     

    Here is a link from IRS with more information regarding disability payments:  Disability Payments

     

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    glt2020Author
    Level 2
    April 5, 2020

    @KarenM90 - where do I find the "Income & Expenses" tab?  The closest thing I see is "Wages & Income".    Any direction would be appreciated!

    Level 12
    April 5, 2020

    The tab is labeled Wages & Income.  Under this section at the bottom is where you will find the Other Income Section.

     

    @glt2020

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