An investment account (Merrill Lynch) paid a bonus on a 1099 MISC. THE SOFTWARE HAS THIS REGISTERED AS A SELF EMPLOYMENT BUSINESS INCOME. It is not.

[Patrice · Accepted solution]

First, delete the existing 1099-MISC entry and follow the instructions below:

How to enter a 1099-MISC :

1. Sing into TurboTax online account.
2. Click on Federal Taxes on the left side of the page.
3. Click on Wages & Income.
4. On the next screen, select the option I'll choose what I work on.
5. On the next screen,  scroll down and select Other Common Income.
6. On the next screen, select the option Yes, I have a 1099-MISC and then follow the prompts.

[Hardway]

can you explain how can I do it on the downloaded version of turbo premier? I input the income on the 1099-misc part then the software would automatically transfer it to the business section. As a result, this part of the income was recorded twice. Thank you.

[rjs]

@Hardway  I assume that the bonus you received from the brokerage is in box 3 of the Form 1099-MISC. Here's how to enter a 1099-MISC with income in box 3 in the 2018 TurboTax CD/Download software so that it is reported as "other income" on Schedule 1 line 21, and not as business income.

If the 1099-MISC that you received is from an employer, or it's for something other than a bonus payment from a bank or brokerage, or the income is not in box 3, this might not be the right procedure. For any of these other cases, post more details.

• Click the Federal Taxes tab.
• Click Wages & Income.
• Click "I'll choose what I work on."
• On the screen "Your 2018 Income Summary," scroll down to the section "1099-MISC and Other Common Income." Click the Start button for "Income from Form 1099-MISC."
• The next screen asks "Did you get a 1099-MISC?" Click Yes.
• On the next screen enter the information from the 1099-MISC form, then click Continue.

TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.

• "Describe the reason for this 1099-MISC." - It doesn't matter what you enter. Enter a short description such as "Bonus." Click Continue. You will see this description used in some of the subsequent questions, but it will not appear on your tax return.
• "Does one of these uncommon situations apply?" - Select the last choice, "None of these apply," and click Continue.
• "Did the Bonus involve work that's like your main job?" - Select No and click Continue.
• "How often did you get income for Bonus?" - "I got it in 2018" will already be checked. Don't check any of the other boxes. Just click Continue.
• "Did the Bonus involve an intent to earn money?" - Select No and click Continue.

This will report the income as "other income" on Schedule 1 line 21 with the description "Other Income from box 3 of 1099-Misc."