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Level 2
posted Apr 5, 2023 7:41:20 PM

PA 1099-Misc and Schedule T confusion

I'm trying to finish my PA taxes but I'm confused about what seems to be a double reporting issue between the 1099-Misc and Schedule T.  First, I won money in an out-of-state competition (not a lottery) and received a 1099-Misc in which they did not take any PA taxes out.  I  noticed that TurboTax classifies that as lottery winnings and therefore adds a Schedule T to my forms.  I don't actually e-file through TurboTax because I hate being nickel and dimed by Intuit for something the state offers for free so I file through PA's MyPath site.  However, in MyPath it asks about any 1099-Miscs that were received and how much should be PA taxable.  So, should I report this as 1099 income that should all be PA taxable or only report it through the Schedule T, as TurboTax does, as lottery winnings?  Or does it not matter as long as it's reported?

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1 Replies
Expert Alumni
Apr 6, 2023 4:06:30 PM

For practical purposes, it won't matter as long as the tax comes out the same. It might be better to report it as listed on your tax return in order to comply with the TurboTax accuracy guarantee, however, as an adjustment to your return could render that void.