1099-misc

Forum|Forum|2 years ago
February 7, 2024
1 reply
1 view

I get a 1099-misc each year from a company paid legal service benefit. It treats it like a business when it is not. This results in 3 errors on my return that I cannot get rid of - 1) business code - 2) accounting method - 3) principle business code.

How can this be corrected it is only $27.00.

JulieS

Level 15

Yes, you will need to delete the self-employment forms and enter the 1099-MISC carefully to avoid activating a business form.

First, delete the business forms from your return:

Open your return in TurboTax Online.
Select Deductions & Credits.
On the left-side menu, select Tax Tools, then Tools.
Select Delete a form, from the list in the pop-up window.
Check the list for Form 1099-MISC, Schedule C, Schedule C-EZ, and Schedule SE. If you have any of these forms in your return, select Delete next to the form.
Confirm your Delete, select Continue.
If you are filing a state tax return, check under your state for Schedule C as well.
Repeat until all self-employment forms are deleted, then Continue with my return.

Next, enter the 1099-MISC:

Select Income & Expenses from the left-side menu.
Select Edit to the right of Income from Form 1099-MISC.
Select + Add a 1099-MISC.
Enter the information from your 1099-MISC, select Continue.
Enter "Pre-paid legal" for the description on Describe the reason for this 1099-MISC, select Continue.
Select None of these apply and Continue.
Select No, it didn't involve work like my main job, select Continue.
On the screen, How often did you get income for Pre-paid legal? select I got it in 2023 only. Select Continue.
Select No, it didn't involve an intent to make money, select Continue.
Answer No to the last question and select Continue.

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mikejfAuthor

Level 2

I am not using turbo tax online. I downloaded a copy for windows

DaveF1006

Level 15

The procedure is slightly different for the desktop version.

Open your return.
Go to the section where you entered the 1099 MISC. Delete the entry by selecting delete.
Now go to the forms mode in your return and delete all forms that mention Schedule C, 1099 MISC, Schedule SE, Schedule C worksheet etc.
You delete by first clicking on the form in the left hand side of the screen and when it appears in your right navigational pane, select delete at the bottom of the form. Do this for each form.
Look in your state return and do the same if those forms appear in your state return.
Now let's enter your 1099 MISC again. This time I am going to suggest a different approach so you may rest assured you won't have to face this dilemma a second time.

Select Federal Taxes>Wages and income>choose what you work on
Scroll to the bottom of the page to less common income>miscellaneous income 1099 A....
Scroll to the bottom of this page to Other Reportable Income
Other taxable income, answer yes
Then give a brief description of the income and the amount listed. For this, i would say 1099 MISC-Legal Services Benefit and then list the amount of the 1099 MISC.

@mikejf

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