Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 3
posted Mar 27, 2024 9:44:49 PM

How do deal with a brokerage account's new customer reward?

Hi,

 

I opened a brokerage account and get an 1099-misc for the reward money for new customer. TurbTax believes it is a business where I made money. And at the end, when it is checking information, it asks me things like
1) city

2) Did I make a payment that requires me to file 1099?

3) Principal business code. 

 

How should I enter these?

 

Thank you

0 3 1730
3 Replies
Level 15
Mar 27, 2024 10:55:56 PM

use box 3 on the 1099-MISC and then check "other" for type. this should put it on schedule 1 line 8z

Level 3
Mar 28, 2024 8:55:14 AM

It is other income on 1099-misc. But TurboTax does not ask me to check 'other' anywhere online. And the next page will ask me the "reason for this income", "did I have an intent to earn money", etc. Basically, it treat it as a business. 

Expert Alumni
Mar 28, 2024 9:53:43 AM

Enter Brokerage Account Reward on 1099-MISC:

  1. Open your return.
  2. Click on Federal tab
  3. Click on Wages & Income.
  4. Click on Other Common Income.
  5. Click on Start next to Income from Form 1099-MISC 
  6. Enter 1099-MISC information (Box 3).
  7. Enter Description for Reward.  Something like Brokerage New Account Reward  See image below.
  8. On Does one of these uncommon situations apply? page, Select None of these apply.  
  9. Did the <description> involve work that's like your main job?  Answer No, Continue.
  10. How often did you get income for <description>?  Answer I got it in 2023., Continue.
  11. Did the <description> involve an intent to earn money?  Answer No,  Continue.
  12. Answer No to Do you have another 1099-MISC?  Continue.

This income will show up on Schedule 1, Line 8z, with your description next to it.  It will carry forward to your 1040 form, Line 8.