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New Member
posted May 31, 2019 11:47:14 PM

I received a 1099 Misc that is not self employment. How do I enter it?

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1 Best answer
Level 15
May 31, 2019 11:47:26 PM

Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported as Other income on Form 1040 line 21 with the description "Other Income from box 3 of 1099-Misc."

  • Click the Federal Taxes tab.
  • Click Wages & Income.
  • Click "I'll choose what I work on" or "Jump to a full list."
  • On the screen "Your 2016 Income Summary," scroll down to the section "1099-MISC and Other Common Income." Click the Start button for "Income from Form 1099-MISC."
  • The next screen asks "Did you get a 1099-MISC?" Click Yes.
  • On the next screen enter the information from the 1099-MISC form, then click Continue.
  • TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.
  • "Describe the reason for this 1099-MISC." - It doesn't matter what you enter. Enter a short description such as "Retiree benefit." Click Continue.
  • "Does one of these uncommon situations apply?" - Select the last choice, "None of these apply," and click Continue.
  • "Did the Retiree benefit involve work that's like your main job?" - Select No and click Continue.
  • "How often did you get income for Retiree benefit?" - "I got it in 2016" will already be checked. Don't check any of the other boxes. Just click Continue.
  • "Did the Retiree benefit involve an intent to earn money?" - Select No and click Continue.

13 Replies
Level 15
May 31, 2019 11:47:16 PM

Which box of the 1099-MISC is the income in?
What did you get the payment for?
Who made the payment to you and issued the 1099-MISC?

New Member
May 31, 2019 11:47:16 PM

I am retired. I receive a benefit from my company for Gym Membership for $250. They report it on a 1090 Misc in Box 3 Other Income. no other boxes are filled in.

New Member
May 31, 2019 11:47:18 PM

Followed the actions suggested. It still creates a business item entry.

Level 15
May 31, 2019 11:47:19 PM

Are you sure you deleted any previous entries? The steps I gave you will not replace or remove a previous entry of the same 1099-MISC.
Does the $250 appear on Form 1040 line 21?
Does the $250 appear on Form 1040 line 12? If not, what do you mean by "a business item entry"?
If it appears on both lines 12 and 21, there is a previous entry that you have not deleted.
If it does not appear on line 21, go through the steps again and make sure you answered the questions exactly as I said.

New Member
May 31, 2019 11:47:21 PM

I deleted the old forms instead of changing them this time. I reentered them and it worked. Thanks for your help.

New Member
May 31, 2019 11:47:22 PM

My 1099-MISC amount is in box 7.  This not for self employment.  I do not have a business.  How do I enter so as not to deal with as a business?

Level 15
May 31, 2019 11:47:24 PM

@mgiegeltt - Your situation is entirely different from the subject of this question. Please post your own separate question, and explain what you got the payment for. What did you do to earn it?

Do not continue the discussion of your problem in this unrelated thread.

Level 15
May 31, 2019 11:47:26 PM

Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported as Other income on Form 1040 line 21 with the description "Other Income from box 3 of 1099-Misc."

  • Click the Federal Taxes tab.
  • Click Wages & Income.
  • Click "I'll choose what I work on" or "Jump to a full list."
  • On the screen "Your 2016 Income Summary," scroll down to the section "1099-MISC and Other Common Income." Click the Start button for "Income from Form 1099-MISC."
  • The next screen asks "Did you get a 1099-MISC?" Click Yes.
  • On the next screen enter the information from the 1099-MISC form, then click Continue.
  • TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.
  • "Describe the reason for this 1099-MISC." - It doesn't matter what you enter. Enter a short description such as "Retiree benefit." Click Continue.
  • "Does one of these uncommon situations apply?" - Select the last choice, "None of these apply," and click Continue.
  • "Did the Retiree benefit involve work that's like your main job?" - Select No and click Continue.
  • "How often did you get income for Retiree benefit?" - "I got it in 2016" will already be checked. Don't check any of the other boxes. Just click Continue.
  • "Did the Retiree benefit involve an intent to earn money?" - Select No and click Continue.

New Member
May 31, 2019 11:47:27 PM

I made a mistake and file the wrong form! I need to file 1099-misc!

Returning Member
Jul 9, 2020 12:14:11 PM

When I followed your instructions, The system is still taking me to a self employment form and we are not self employed. how do I bypass this?

 

Expert Alumni
Jul 11, 2020 12:38:58 PM

If you have income reported in Box 7 of Form 1099-MISC TurboTax will direct you to the self-employment section because for tax purposes, you are self-employed and must pay self-employment taxes on this income.  

 

If you do not have this type of income, please give us a little more information so that we can assist with providing you with better directions. 

 

@lmc2020

Level 1
Mar 22, 2022 10:16:52 AM

I am also having this problem.... I earned interest on my Crypto Currency holdings and have Box 3 completed for Other income. WHen filling out the forms, it ends up taking me to self employment targeted questions. All I did was deposit crypto into a lending platform and collected interest on that amount. Why is it pushing me to Self Employed question?

Expert Alumni
Mar 22, 2022 10:38:19 AM

In past most 1099-MISC forms were for some form of self-employment. That clearly does not apply in your case. 

 

Since you have already had error messages related to the way the 1099-MISC was entered, you need to delete what is in there already.

 

If you are using TurboTax Online:

  1. From inside the return, scroll down to Tax Tools on the bottom of the left side menu.
  2. Select Tools.
  3. Click on Delete a form (third on the list at the bottom of the screen).
  4. Find Form 1099-MISC on the list of forms.
  5. Click Delete to the right.
  6. Confirm your Delete.
  7. Find Schedule C on the list of forms.
  8. Click Delete to the right.
  9. Confirm your Delete.
  10. Click Continue in the lower right. 
  11. If you have a state return check for the same forms under your return and delete them if you find them. 
  12. Click Continue with my return.

 

If you are using the Desktop version (disc or download):

  1. Click Forms toward the upper right corner. 
  2. Find Form 1099-MISC on the list on the left.
  3. Highlight it, then click Delete in the lower left corner of the reading pane.
  4. Find Schedule C on the list on the left.
  5. Highlight it, then click Delete in the lower left corner of the reading pane.
  6. If you have a state return check for the same forms under your return and delete them if you find them. 
  7. Click on Step by Step in the upper right corner to return to the interview.

 

After deleting the forms, run the Federal review or Smart Check to make sure all the error messages are resolved. Once the return is clear of error messages, enter the form like this.

 

Here is how to enter your 1099-MISC box 3 amount:

  1. Select Federal on the left side menu.
  2. Select Income and Expenses toward upper left.
  3. Expand/ scroll down the list and find the section called, Less Common Income.
  4. Scroll all the way down and select Miscellaneous Income, 1099-A, 1099-C.
  5. Select Other reportable income.
  6. Answer the first question Yes.
  7. Enter Crypto staking or interest as the description and amount on this page, click Continue. 
  8. Click through the rest of the section and finish your return.