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mikejf
Returning Member

I get free legal service and they issue me a 1099-misc. It is not a business but the Premier edition treats it as such so there are 3 errors when I check my tax return.

 
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4 Replies
MinhT1
Expert Alumni

I get free legal service and they issue me a 1099-misc. It is not a business but the Premier edition treats it as such so there are 3 errors when I check my tax return.

If you receive a form 1099-MISC for a legal service plan, then you aren't considered as self-employed and don't need to file a Schedule C.

 

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

 

In TurboTax, there's a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2023, not in previous years, and not in 2024, you will then have the screen where you can say that it didn't involve an intent to earn money.

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I get free legal service and they issue me a 1099-misc. It is not a business but the Premier edition treats it as such so there are 3 errors when I check my tax return.

First STOP entering a 1099-MISC  in the 1099-MISC section.  Delete it if you already did.

 

Next enter it this way ...

 

Follow these directions to post 1099-Misc, box 3 income not subject to self-employment taxes.

  • Down the left side of the screen, click Federal.
  • In the center of the screen, click Income & expenses.
  • On the screen Your income and expenses, scroll all the way down to the last section, Less Common Income.
  • Click the Start or Update button for the last topic, Miscellaneous Income, 1099-A, 1099-C.
  • On the next screen, Let's Work on Any Miscellaneous Income, scroll down and click the Start or Update button for the last topic, Other reportable income.
  • The next screen asks, Did you receive any other taxable income. Click Yes.
  • On the next screen, Other Taxable Income, enter a description and the amount. Click Continue.
  • On the next screen click Done.

The income will be reported on Schedule 1 line 8 with the description that you entered. 

mikejf
Returning Member

I get free legal service and they issue me a 1099-misc. It is not a business but the Premier edition treats it as such so there are 3 errors when I check my tax return.

Now there are 4 errors.  I deleted the 1099-misc and saved the return.  Even before I re entered it the way you suggested I ran the error check and 4 errors appear as if I didn't delete.  It does not show as the original 1099 but for whatever reason Premier still thinks it is there.

AmyC
Expert Alumni

I get free legal service and they issue me a 1099-misc. It is not a business but the Premier edition treats it as such so there are 3 errors when I check my tax return.

The program thinks something is there -means a piece of data is stuck. Follow these steps.

Online version:

A full or corrupted cache can cause problems in TurboTax, so sometimes you need to clear your cache (that is, remove these temporary files).

For stuck information follow these steps:

  1. Delete the form/ worksheet- if possible, see How to Delete  
  2. Log out of your return and try one or more of the following:
    • Don't use Internet Explorer.
    • Clear cache and cookies,
    • Sign in using a different browser.
    • Sign in using a different device.
  3. Log back into your return.
    • Enter the information again.

 

Desktop version: 

  1. Delete the form
  2. Save your return while closing the program.
  3. Update the program
  4. Open
  5. Enter the information again.

 

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