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New Member
posted Jun 6, 2019 12:18:19 AM

My income from New York State Paid Family Leave was sent as a 1099-MISC. When I enter it, it keeps moving it to the business section as a self employment.

My income from New York State Paid Family Leave was sent as a 1099-MISC. When I enter it, it doesn’t give me the option to say it was paid leave and moves the income into the self-employment business section. I’m not sure how to change this as it is not a schedule c. 

0 21 9739
21 Replies
Level 15
Jun 6, 2019 12:18:20 AM

Reporting 1099-MISC (box 3 or box 7) that is not self-employment income

Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.

Enter the 1099-MISC exactly as printed, and then Continue.

Enter the reason you got this money – be it scholarship, bonus, streaking butt naked across the 50 yard line of the super bowl, whatever. Then continue.

Select None of these apply, then Continue.

Select No, it didn’t involve work….. and Continue.

Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.

Select No, it didn’t involve an intent to earn money, then Continue.

Select NO, then Continue.

Click the DONE button, and that does it.


New Member
Jun 6, 2019 12:18:22 AM

I am having this exact same issue and tried these steps and it did not work for me.  I am able to get past federal but once I try to finalize NY State taxes I get this error: IT-215: Line 8 EIN You have indicated that you have business income or loss on line 8.  Enter in the EIN for the primary business.  How can I  correct this error?

New Member
Jun 6, 2019 12:18:23 AM

I am also having the same issue.  Schedule C and other sections are automatically added when using the 1099-MISC and you can't use the Paid Family leave option as we did not receive a 1099-G in NY State.

New Member
Jun 6, 2019 12:18:25 AM

Same problem here. All sorts of Schedule C / Biz Income errors. Program HELP seems to suggest entering under the Unemployment (and Paid Family Leave) Section as if reported on 1099-G. Any updates?

New Member
Jun 6, 2019 12:18:27 AM

I have the same issue. I live in NYS. I would love same clarification on this TurboTax. I would hate to go use a CPA!

New Member
Jun 6, 2019 12:18:28 AM

Also having this issue.. Anyone figure it out??.. Im also from NY

New Member
Jun 6, 2019 12:18:30 AM

Do you guys also have the income in box 7?$

New Member
Jun 6, 2019 12:18:31 AM

Can someone from turbotax please respond or address this issue?

New Member
Jun 6, 2019 12:18:33 AM

Has anyone figured out a workaround? I'd really like to file my taxes soon!

New Member
Jun 6, 2019 12:18:34 AM

Any update on this issue?

New Member
Jun 6, 2019 12:18:36 AM

I'm having this same issue - entered my 1099MISC using above recommended steps and keep getting prompted for Schedule C information, which is irrelevant. Continuing to search/wait for answers...

New Member
Jun 6, 2019 12:18:37 AM

How many posts does it take for someone from turbo tax to actually address this problem?

Not applicable
Jun 6, 2019 12:18:39 AM

Same issue here... anyone figure out how to address this yet?

Not applicable
Jun 6, 2019 12:18:40 AM

Just chatted with the support team on the phone. I followed the step-by-step guidance above and was still getting the Schedule C form -- which is expected for a 1099-MISC I guess. The support team helped me fill it out the Schedule C to clear the smartcheck errors...

Address questions -- use your home address
Business name is your own name
Business code is 999999,
Accounting method = Cash
Did you materially participate = No
Required to file Form(s) 1099? = No

I was concerned about this approach, but then they reviewed my actual return forms and the Schedule C questions properly reported the income as Other Income. That's good, and there were no errors after I finished that.

Hope this helps. Good luck!

New Member
Jun 6, 2019 12:18:42 AM

This cannot be the correct way to enter this information.  When I fill out the same fields I end up with a personal deduction for self employment tax. This changes my total deduction and I clearly wasn’t self employed.

Level 15
Jun 6, 2019 12:18:44 AM

That's because you entered it wrong the first time. You need to go into the business section and delete the SCH C. Until you do that, the SE tax will continue to be assessed by the program.

New Member
Feb 12, 2021 4:42:43 AM

nystaxper (or any others who followed this advice of entering a business code for NY paid family leave).

 

Did this work??

 

Background, for my 2020 taxes, I followed all the advice above up until this last suggestion of entering a business code just to get rid of the error.  Non of the above advice worked, but I'm hesitant to enter a business code just to get past this problem in order to enter NY paid family leave that was reported as 1099-Misc by a third party payor.  

 

Did you have any fallout/follow up issues (i.e. tax return not accepted or a follow up issue from the IRS for doing it by entering 999999 for paid family leave income?)  It seems unconventional and as though it could cause a problem down the road by entering 999999 as business code after you did this?

 

TURBO TAX NEEDS TO FIX THIS PROBLEM!  IT'S A GLITCH IN THE SOFTWARE!! TURBO TAX EXPERTS, WHY AREN'T YOU FIXING THIS?  IT'S OBVIOUSLY A PROBLEM FOR MANY USERS!!!???

Level 2
Mar 23, 2022 11:00:45 AM

This worked for me. But what do you do with the Schedule C. Do you just delete it or fill it in?

Employee Tax Expert
Mar 23, 2022 11:24:36 AM

If you utilized the posting process outlined by nystaxpayer , and you have no other Schedule C income, you can clear it out and it will not be included in your tax return.

Level 2
Mar 23, 2022 12:57:50 PM

JohnB5677, thank you. Just to be clear.  When you say "you can clear it out and it will not be included in your tax return" Would I delete the schedule C from the Turbo Tax program (since there's nothing to report) or fill in the responses on Schedule C with the nystaxper answers and produce the Schedule C which would be sent to the IRS and states?

Employee Tax Expert
Mar 23, 2022 1:18:17 PM

Yes, delete the empty and unused IRS Form 1040 Schedule C form in TurboTax.