Executor fee miscategorized by Turbotax

Forum|Forum|3 years ago
April 14, 2023
2 replies
50 views

I received a 1099-MISC for being an executor. TT automatically completed a Schedule C for it.

But the IRS is clear, it should not be a Schedule C, but a Schedule 1.

From publ 559: If you aren't in the trade or business of being an executor (for instance, you are the executor of a friend's or relative's estate), report these fees on your Schedule 1 (Form 1040), line 8z. If you are in the trade or business of being an executor, report fees received from the estate as self-employment income on Schedule C (Form 1040), Profit or Loss From Business.

It was a $1000 more to be on Sch C, btw. There was no way to move the income from Sch C to Sch 1 except via override. Which means that I can't e-file then. Looks like a programming issue to me....

I did call CS - no help.

Best answer by Anonymous_

You need to delete what you entered and change how you entered the fee.

Use the Less Common Income section and look for the miscellaneous income subsection at the bottom.

Anonymous_Answer

Level 15

You need to delete what you entered and change how you entered the fee.

Use the Less Common Income section and look for the miscellaneous income subsection at the bottom.

DoninGA

Level 15

Use this procedure to enter the Form 1099-MISC. It will be entered on Schedule 1 Line 8z and the amount flows to Form 1040 Line 8 as ordinary income.

To enter a Form 1099-MISC -

Click on Federal Taxes
Click on Wages and Income
Click on I'll choose what I work on (if shown)
Scroll down to 1099-MISC and Other Common Income
On Income from Form 1099-MISC, click the start or update button

Or enter 1099-misc in the Search box located in the upper right of the program screen. Click on Jump to 1099-misc

In the interview for the Form 1099-MISC make sure you select that this was not an intent to earn money and did not involve work like your main job. On the screen for Uncommon Situations select None of these apply.