How to show a 1099-MISC is tax defered?

[johnkane526]

I received a 1099-MISC for the proceeds from a tender offer. The security tendered was in an IRA, and the payment was received (directly) into the same IRA.  The 1099-MISC proceeds should therefore be tax deferred until I withdraw from my IRA.  How do I enter a 1099-MISC and show the amount as tax deferred?  Do I just delete the 1099-MISC?   (Turbotax adds the 1099-MISC to my 2022 income as taxable).  I am concerned about an audit if I do not report the 1099-MISC, BUT the proceeds are not taxable now.

[ee-ea · Accepted solution]

Since you received the 1099-MISC, 1099-NEC or 1099-K (1099-Form) you will need to enter it into your tax return. If the IRS audits your return, you can show them the situation. You can enter the 1099-Form in the 1099 section and you can enter it in the area where you are subtracting expenses.

Follow these steps:

First enter the income:

1. go to the federal income section

2. scroll to the bottom

3. Miscellaneous Income, 1099-A, 1099-C, Start

4. Scroll to the bottom

5. Other reportable income, Start

6. Other taxable income?

7. Select YES

8. Description 1099-Form, box 3

9. Amount, enter your amount, $$$$$

10. continue

Subtract expenses

1. Miscellaneous Income, 1099-A, 1099-C, Start

2. Scroll to the bottom

3. Other reportable income, Start

4. Other taxable income?

5. Select YES

6. Description 1099-Form expenses

7. Amount, enter your amount, must be less than or equal to the amount on the 1099-Form as a negative, -$$$$

8. continue

[johnkane526]

Worked!  Thank you ee-ea !!