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jmac392
Level 1

How do I report 1099-MISC "Other Income" that was a credit card bonus?

In 2020, American Express offered a $2500 statement credit for some card holders who got a new mortgage with Quicken Loans. I did this offer, and now have a 1099-MISC for the same amount in box 3.  I've tried clicking around all the options in turbotax. What is the best way to categorize this "other income" without triggering all the questions about self-employment?
1 Best answer

Accepted Solutions
MinhT1
Expert Alumni

How do I report 1099-MISC "Other Income" that was a credit card bonus?

If you receive a form 1099-MISC for a credit card bonus, then you are not considered as self-employed and do not need to file a Schedule C.

 

In TurboTax, enter your form 1099-MISC in the 1099-MISC section and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

 

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2020, not in previous years and not in 2021, you will then have the screen where you can say that it did not involve an intent to earn money.

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3 Replies
KathrynG3
Employee Tax Expert

How do I report 1099-MISC "Other Income" that was a credit card bonus?

The best way to report this is in Other Income.

To do this in TurboTax, follow these steps:

  1. From the left menu, go to Federal and select the first tab, Wages & Income
  2. Add more income by scrolling down to the last option, Less Common Income, and Show more
  3. Scroll down to the last option, Miscellaneous Income, 1099-A, 1099-C and Start
  4. Choose the last option, Other reportable income and Start and Yes
  5. Enter the applicable description and amount and Continue
jmac392
Level 1

How do I report 1099-MISC "Other Income" that was a credit card bonus?

Hi. I followed these steps, and when I get to the "Other Taxable Income", it has a clear message stating "Do not enter income reported on Form 1099-MISC".

 

My original issue is that it is on box 3 of a 1099-MISC.

MinhT1
Expert Alumni

How do I report 1099-MISC "Other Income" that was a credit card bonus?

If you receive a form 1099-MISC for a credit card bonus, then you are not considered as self-employed and do not need to file a Schedule C.

 

In TurboTax, enter your form 1099-MISC in the 1099-MISC section and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

 

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2020, not in previous years and not in 2021, you will then have the screen where you can say that it did not involve an intent to earn money.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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