Miscellaneous Income 1099
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nbfctreas
New Member

Miscellaneous Income 1099

I have other income from an 1099-MISC.  This income is from a government sponsored Length of Service Award Program for volunteer firefighters (in New York State) that meets the exemption requirements of IRC Section 457(e)(11) of IRC 457.  TurboTax does not address this exemption and processes the income as taxable income and adds income to Form SE.  If Turbo Tax does recognize this exemption, how is this reflected in the program?

3 Replies
AmyC
Employee Tax Expert

Miscellaneous Income 1099

It should not be generating SE tax. The questions are trying to determine if you are getting this for self employment to owe tax. You have to answer so the program knows it was not an intent to earn money. Let's fix that:

  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
  6. Guessing the income is in box 3, may have tax withheld in box 4
  7. Continue
  8. Describe the reason, Firefighter Svc Award or similar
  9. continue
  10. None of these apply
  11. Continue
  12. Did this involve main job?
  13. No
  14. Continue
  15. How often do you get?
  16. Got in 2020
  17. Continue
  18. Intent to earn money?
  19. No
  20. Continue
  21. Do you have another?
  22. No
  23. Continue
  24. No, SE tax now.

 

You will need to subtract it out from NY. See I receive a 1099 Misc for my volunteer firefighter LOSAP.

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nbfctreas
New Member

Miscellaneous Income 1099

Thank you

AmyC
Employee Tax Expert

Miscellaneous Income 1099

Glad to help!

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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