To
correctly enter the 1099-MISC so that it does not prompt a Schedule C, take the
following steps:
- In your open Federal
return,
choose the tab for Wages & Income
- Tab through or
scroll down to Other Common Income (you may have to choose Add more income and then See more income to view this
topic) and then Show More
-
Start/Revisit Form 1099-MISC
-
Edit the 1099-MISC if you already entered it, or Add it now and enter the information on the form,
then Continue.
- On the screen Describe
the reason for this 1099-MISC enter your description.
- On the screen Does
one of these uncommon situations apply? choose None
of these apply.
- On the screen Did the [Description]
involve work that's like [Name's] main job? answer No.
- On the next screen,
choose the year you received the money. (In this case, 2018.)
- On the screen Did
the [Description] involve an intent to earn money? choose No and complete the interview.
This will place the
1099-MISC on Form 1040, Schedule 1, Line 21.
To
reverse the income reporting because it is non-taxable:
- In your open Federal
return,
choose the tab for Wages & Income
- Scroll down to Less
Common Income and Show more
-
Start/Revisit Miscellaneous Income and
choose Other reportable income
- Say Yes to continue to the screen "Other
Taxable Income". Enter your description and the amount as a negative
number.
A corresponding
entry will appear on Form 1040, Schedule 1, Line 21 of your return. You
may not see it, since these two entries will amount to zero, but it's there.
