My husband receives a 1099 misc for gas allowance at work and we keep getting prompted for schedule c...why?

[ericapayton21]

Box 7 is empty, he is not self-employed, and we keep seeing the amount listed as Business Income. He received a 1099 last year and we did not have this issue. What are we doing wrong?

[DianeW · Accepted solution]

If the company who provided you the 1099-MISC has an accountable plan, which means you submit receipts/mileage log to your employer and they reimburse you, as long as the reimbursement does not exceed IRS limits, your reimbursement does not get reported to the IRS and is not considered as income to you.

If the company who provided you the 1099-MISC has a non-accountable plan (you do not submit receipts/mileage log), your reimbursement gets added to your W2 income and, as applicable, you deduct job related business expenses on your Schedule A.

You must itemize your job related expenses (schedule A) and it must be more than 2% of your adjusted gross income (AGI).

Where to put in Turbo Tax Self Employed:  

Income:  This payment can be reported on line 21 of the Form 1040. 

In TurboTax (online or desktop) follow these steps to reach this result. 

• Business Taxes > Personal Income > Other Common Income > Income from Form1099-MISC > Update 
  
• Edit > Continue (if all your information is there and the income is in box 3)
• Type description, if necessary
• Continue > Check None apply
• No it did not involve work
• Select got it in 2016
• No it didn't involve an intent to earn money
• Finish

This will place the amount on line 21 as it should. You can review your return by using the steps here.

• My Account (upper right) > Tools > View Tax Summary > Preview My 1040 (above)

Deduction:

1. Type schedule a in search box, upper right
2. You will be prompted to Jump to schedule a.
3. Continue to follow and answer questions until you reach section about business expenses.
4. Enter the same amount from the1099-MISC and finish interview.