No, that is not correct.
If you accidently created a schedule C, you will need to delete it and the related 1099-MISC form. Follow these instructions:
- With
your return open, search for this exact phrase: sch c (include
the parentheses) and then click the "Jump to" link in the search
results.
- Answer Yes when
asked if you had (or want to work on) business income and expenses for 2015.
- That's
right – you'll need to answer Yes,
even though it doesn't make sense.
- When
you get to the Business
info or Business
Summary screen, click Delete next to the defunct
business.
- Answer Yes to
confirm the removal of all business-related forms.
- In the
upper right corner, click My Account > Tools.
- In the
pop-up window, select Delete a form.
- Click Delete next to the form or schedule and follow the
instructions to remove the form/schedule.
- Delete
your 1099Misc form (it may have been deleted when you deleted
the Schedule C).
To enter your Prize winnings so it is not taxed as wages (self-employment income):
- Type other taxable
income in the search bar
- Click on Jump to other taxable
income
- At the Other Wages
Received screen, answer NO and continue
- Scroll down to Other
reportable income, click Start/Update
- Click YES at Any
Other Taxable Income?
- Enter Prize Winnings, the amount and continue.
- The amount should
appear on your Form 1040, line 21.
Related information: What is unearned income?
