1099-MISC

[georgevb]

I received a 1099-MISC from investments and Turbo Tax assumes that it is income from a business.  I do not have a business and just want to add the income to my total income.  Last year Turbo Tax included it in my Schedule 1 Lin1 1z as "Other income from box 3 of1099-MISC"  What do I have to do to get to that spot and not identify a business in Schedule C which I do not have.

Thank you for your help.

[MinhT1]

If you receive a form 1099-MISC for investments, 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 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.

[georgevb]

I followed the instructions provided by saying that the money listed in my 1099_MISC "did not involve an intent to earn money" yet Turbo Tax found 6 errors which included describing my business address etc in a Schedule C.  I am at a loss as to what to do next.

[GeorgeM777 · Accepted solution]

You might consider deleting Schedule C.  If you are using TurboTax online, here are the steps to follow to delete a form.

1. Open or continue your return in TurboTax.
2. In the left menu, select Tax Tools and then Tools.
3. In the pop-up window Tool Center, choose Delete a form.
4. Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

There is another way to report your 1099-MISC as other income in addition to the one described by @MinhT1.  Here is the alternative way to report a 1099-MISC.  Note: either way will produce the same result, namely that your income amount will appear on Schedule 1 to Form 1040, and on Form 1040, line 8 as other income.  

1. To enter other income in TurboTax online, click on Wages & Income, 
2. scroll down the page to Less common income, click on the drop-down arrow and select Miscellaneous Income.  
3. From the list select Other reportable income and respond to the questions on the screens that follow. 
4. On the screen, Other Taxable Income, you may see information indicating that you should not report your 1099-MISC in this section.  Just ignore that statement and enter your information.  

If you are using TurboTax CD/download, the process is similar.  After selecting the Personal tab, and the Personal Income tab, scroll down the screen to Less Common Income, and select Miscellaneous Income.  Enter your information. 

@georgevb