Miscellaneous Income 1099

[nbfctreas]

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?

[AmyC]

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.

[nbfctreas]

Thank you

[AmyC]

Glad to help!

[NCFM80]

Worked for me for 2020 taxes.

[kbas44]

Can you update the instructions for the 2021 Deluxe application?

[LeonardS]

To enter a 1099-MISC:

1. Open or continue your return, if you're not already in it.

2. Search for 1099-misc and select the Jump-to link.

3. Answer Yes to Did you get a 1099-MISC?

 ○ If you already entered a 1099-MISC, you'll be on the 1099-MISC Summary screen, in which case select Add Another 1099-      MISC.

○ If you need to edit or delete a previously-entered 1099-MISC, select the appropriate button.

4. Enter the info from your form into the corresponding boxes.

○ If you need to enter boxes 4–6 or 8–17, check My form has other info in boxes 1–17 to expand the form.

If your 1099-MISC was for any of the following, you'll enter it in another section of TurboTax.

• Rental Properties and Royalties (Schedule E):

○ Search for rental income and expenses (using this exact phrase) and select the Jump to link

• Farm Income and Farm Rental:

○ Search for farm income and select the Jump to link

This link Where do I enter a 1099-MISC? has information you may find useful.

[Gg7777]

perfect for 2021 service award - no SE tax - THANK YOU : )

[Gg7777]

Perfect - No Self employment tax on my 2021 tax - I follow exactly your information 

any idea how we get the VRIPA credit ?

[DawnC]

On December 20, 2019, President Trump signed into law appropriations legislation (H.R. 1865), which includes language restoring the Volunteer Responder Incentive Protection Act (VRIPA) in the 2020 tax year.   VRIPA exempts nominal volunteer recruitment and retention incentives from being subject to federal income tax and reporting requirements for the 2020 tax year.  Specifically, H.R. 1865 exempts property tax benefits and up to $600 per year in other incentives, such as stipends, that volunteer fire and EMS personnel receive as a reward for their service.

VRIPA was first enacted in 2007 and was in effect from 2008-2010.  Originally, VRIPA exempted property tax benefits and up to $360 per year of other incentives. VRIPA expired in 2011 and 2020 will be the first year that it is back in effect since then.  In addition to restoring VRIPA for the 2020 tax year, H.R. 1865 raises the maximum exempted benefits amount for non-property tax benefits from $360 to $600 per year.

When VRIPA was in effect previously, the IRS issued guidance on how volunteer emergency services agencies and personnel could take advantage of it.  The NVFC is in the process of working with Congress and the IRS to develop updated guidance.

While H.R. 1865 restores VRIPA for one year, passage of separate legislation is required to exempt nominal volunteer incentives permanently.   @Gg7777