"My question is, how to enter the Box 3 income so it shows up on Line 21 of the 1040."
Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported on Form 1040 line 21.
This will report the income as Other income on Form 1040 line 21 with the description "Other Income from box 3 of 1099-Misc."
Box 7 is assumed by the IRS to be self employment and so Turbotax assumes that too unless you show otherwise. What exactly did you do to get this income and how is it reported?
OP asked same Q last year:
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3228828-how-can-i-get-misc-income-to-not-show-up-on-schedule-se">https://ttlc.intuit.com/questions/3228828-how-can-i-get-misc-income-to-not-show-up-on-schedule-se</a>
I understand that Box 7 is non employee compensation. However, there are other boxes on a 1099 Misc that do not show up on Schedule C. I had a problem with Box 3 showing up on Schedule C and also calculating Self employment tax which is an error and would cause additional taxes that are not owed. My question is, how to enter the Box 3 income so it shows up on Line 21 of the 1040.
How you answer the questions in the interview after entering the 1099-MISC determines whether it is entered as other income on line 21 or on Schedule C. If you answer in such a way that would lead the IRS to define it as self employment income or other income that you must pay self employment taxes on, TurboTax will put it on Schedule C.
OP still hasn't told us the nature of the money he received.
It is Box 3 on 1099 MISC related to investment income from UBS
Because it is not interest or dividends. I don't know but Turbo tax should still handle it correctly.
"My question is, how to enter the Box 3 income so it shows up on Line 21 of the 1040."
Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported on Form 1040 line 21.
This will report the income as Other income on Form 1040 line 21 with the description "Other Income from box 3 of 1099-Misc."
If you are using the CD/download product, open up forms and open the 1040 and then the Other Income Statement from line 21. Enter the amount on line 3a of the Other Income Statement "Substitute payments in lieu of interest or dividends" or line 3b "Other Income from box 3."
Try this:
If you answer the question 'Did the activity involve the intent to earn money?' as 'NO', it may put the income in the correct place.
That was the answer last year. What a dumb question. I answered yes because it was an investment. They subsequently took that question away. Only Box 7 should be schedule C income.
Sorry, we are just other users, not TT employees. But why is UBS reporting this on a 1099-MISC?
Blame the IRS. Investments are UNearned income. Income from working is earned and this subject to SE tax.
See this site, <a rel="nofollow" target="_blank" href="https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income">https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income</a>
Turbotax has to follow the IRS language even if the IRS language is not intuitive to non-experts.