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Level 1
posted Mar 5, 2023 1:32:41 PM

Brokerage Incentive drove me to Schedule C

I received a brokerage incentive of $3500.  It was reported on a 1099 Misc and I in turn put it into TT Deluxe.

It was listed as 'Other Income'

For some reason TT started/completed a Schedule C and now says I should pay $700 self employment tax.

 

I must have done something wrong her but I cannot determine what?

 

Any help would be appreciated. 

0 2 388
1 Best answer
Expert Alumni
Mar 5, 2023 2:56:57 PM

You reported this as though it were self-employment income. The form needs to be deleted and re-entered as other income.

 

To delete a form In TurboTax Online, here's the general procedure for viewing a list of all the forms in your return and deleting unwanted forms, schedules, and worksheets in TurboTax Online:

  1. Sign in to TurboTax and open your return by selecting Continue or Pick up where you left off
  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, and worksheet in the list and follow the instructions

 

You can enter the 1099-MISC as income that is not self-employment income.

 

Follow these steps in TurboTax Online:

  • In the Federal section, under Your income and expenses
  • Scroll to Other Common Income
  • Select Form 1099-MISC
  • Follow the Prompts and enter amount in Box 3, Continue
  •  Describe the reason for this 1099-MISC box
  • Do any of these uncommon situations apply? check the last box
  • Select No, it didn't involve work like my main job on Did the brokerage incentive involve work that's like your main job?
  • Answer How often did you get income...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.
  • Select No on Did the Brokerage incentive involve an intent to earn money?

 

 

2 Replies
Expert Alumni
Mar 5, 2023 2:56:57 PM

You reported this as though it were self-employment income. The form needs to be deleted and re-entered as other income.

 

To delete a form In TurboTax Online, here's the general procedure for viewing a list of all the forms in your return and deleting unwanted forms, schedules, and worksheets in TurboTax Online:

  1. Sign in to TurboTax and open your return by selecting Continue or Pick up where you left off
  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, and worksheet in the list and follow the instructions

 

You can enter the 1099-MISC as income that is not self-employment income.

 

Follow these steps in TurboTax Online:

  • In the Federal section, under Your income and expenses
  • Scroll to Other Common Income
  • Select Form 1099-MISC
  • Follow the Prompts and enter amount in Box 3, Continue
  •  Describe the reason for this 1099-MISC box
  • Do any of these uncommon situations apply? check the last box
  • Select No, it didn't involve work like my main job on Did the brokerage incentive involve work that's like your main job?
  • Answer How often did you get income...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.
  • Select No on Did the Brokerage incentive involve an intent to earn money?

 

 

Level 1
Mar 8, 2023 1:00:49 PM

Thank you .