I have coupon interest from a prepaid forward securities contract. Can't I report that as ordinary income?

[abcallahan]

My 1099-MISC intructions say to report as ordinary income but TurboTax tries to have me report it as business income. This is not correct. How do I get around this circular issue?

[baldietax]

had a similiar issue with one of those cash bonuses from a brokerage last year which was reported in 1099-MISC Box 3; there's a question after you put in the 1099-MISC whether it was an "Intent to earn money".  Say No to that and it should flow to Schedule 1 line 8z and then hit your 1040 on line 8.

I'm not a CPA and not encountered a "prepaid forward securities contract" so I can't speak to any special tax treatment (tho, sounds like ordinary income to me) - but that's how to do in TT.

[AmyC]

Only because you have a statement saying to report it as ordinary income, would you do so. Typically, it isn't ordinary income -but can be. So you are in great shape! 

Follow these steps:

1. Log in to your return.
2. Go to income
3. Scroll down to Other Common Income
4. Select Income from 1099-MISC
5. Edit/ Start/ Revisit
6. Enter income -the income should be in box 3,
7. Enter tax if any withheld in box 4
8. Continue
9. Describe the reason -
10. continue
11. None of these apply
12. Continue
13. Did this involve main job?
14. No 
15. Continue
16. How often do you get?
17. Got in 2024 
18. Continue
19. Intent to earn money?
20. No
21. Continue
22. Do you have another?
23. No
24. Continue