1099 misc, i review products for Best Buy and was sent a 1099 with an amt in box 7 (nonemp comp) - how am i supposed to handle this? not my own business? not paid cash!

[poohkids2]

I receive products to review for Best Buy. I can't sell them, give them away, trade them in etc.... How am I supposed to claim this dollar amount in box #7?  I wasn't paid cash and I don't own a business...  Telling me I have to pay taxes on this amount and the State portion is asking tons of questions about this...  HELP!!

[IreneS · Accepted solution]

UPDATED FOR TAX YEAR 2019

Even though you weren't paid in cash you still need to include the "income"(value of goods) on the 1099-MISC in your return. You can enter the 1099-MISC in TurboTax as "Other Common Income," which is reported on line 8 of 1040 Schedule 1 and will not generate Schedule C or SE tax. 

Please use the following steps:

1. Click on Federal > Wages & Income.
2. Scroll down to the Other Common Income section. 
3. Click on the Start/Revisit box next Form 1099-MISC. 
4. On the screen Did you get a 1099-MISC?  click on the Yes button.
5. On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.
6. On the following screens, answer the following questions:

• Did it involve work that's like your main job? No.
• You got it in 2019
• No, it didn't involve an intent to earn money

        7.  Continue through the rest of the interview screens. The income will appear as Other Income.

[Edited | 4/15/2020 | 8:43am PDT]

[poohkids2]

Phew, Thank you!!!

[poohkids2]

Is this taxable in my State?  I've selected "other nonemployee compensation" - is that correct selection?  Also, do i claim this as "Other Misc  Compensation"

[IreneS]

Probably -- most states start with the federal AGI and then make adjustments.

[Dvlowen]

Thank you for this information it is very helpful. I have one more question. On the “you got it in” screen if you’ve been apart of TIN for multiple years and you select more than the current year it charges SE Tax. But if you only select current year it does not. Are you only supposed to select the current year?

[poohkids2]

yes current year you are filing taxes for.