1099misc prize money

[dlidawer]

Original Question:  

Prize money from NASA for software. Received a 1099 Misc Turbotax is using a schedule C. Is it a qualified trade or business? I work for NASA's Jet Propulsion Lab.

Response:  

ANSWER

Here is how to enter your 1099-MISC for Prize Winnings:

1. Select "Federal" on the left panel  
2. Select the "Wages & Income" sub-tab at the top of the screen
3. Select See all income
4. Scroll down to Other Common Income and select show more
5. Start/Revisit box next to Income from Form 1099-MISC.  
   
6. Did you get a 1099-Misc?  click on the Yes button
   
7. Enter the information from the 1099-MISC
8. On the screen Does one of these uncommon situations apply? mark that This was prize winnings and click Continue

Follow up response:  Thank you for the steps.  I deleted the old forms and followed these.  Now under forms I again have a red exclamation point by Schedule C (NASA award).  When I go to the form, pink boxes appear in the section "Qualified Business Income Deduction Info"  The highlighted question is "Is this activity a qualified trade or business (yes or no)?"  What is the correct response?

[Ashby · Accepted solution]

The correct response is "no". The QBI designation is only for self-employment income.