Problem entering Celsius Network LLC 1099-MISC, registering as a business

[AliciaP1]

The best way to clear the system of any confusion is to delete the entry and form and re-enter it.

 To delete, please follow the instructions below:

1. Within your return in TurboTax Online search for 1099-MISC.
2. Click the Jump to link in the search results.
3. Delete the 1099-MISC line with the trash can icon.
4. If you get to the question Did you have any self-employment income or expenses? answer No. 
5. Click on Tax Tools on the left side of the screen.
6. Click on Delete a Form. 
7. Scroll down to your 1099-MISC and click Delete if it is still there.

To enter the 1099-MISC as other income, not self-employment income, please follow these steps:

1. Open or continue your return
2. Select Search and search for 1099-misc
3. Select the Jump to link in the search results
4. 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 you'll select Add Another 1099-MISC
   • If you need to edit or delete a previously entered 1099-MISC, select the appropriate button
5. 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

@ericgfx

[boomtown]

If you enter your interest income as "with intent to make money", then you could put in expenses, right? I intended/wanted to make money, but only earned interest income. But I did spend money learning how to do all of this, for example I bought a book.

[HillsideBruce]

Bumping this up to tax year 2022... same problem set - entered 1099-MISC for Celsius, and it was for their earn program (park crypto and get interest - before they went bellyUP, bankrupt)... AND as another OP stated last year - Turbo Tax added a Schedule C for this entry, which as was mentioned for tax year 2021 - is not helpful as it is asking about this as your business - and for SURE, Celsius wasn't my business... 

So, is the correct answer that works, and won't get me/possibly others into "trouble" with the IRS - is to NOT enter a 1099-MISC (when Turbo Tax asks for that info), but to add the info to Misc Income section (of Turbo Tax) - Wages and Income, Less Common Income, Misc Income (1099-A, 1099-C)?

[GeorgeM777]

Yes, that is one option.  After selecting Miscellaneous Income, you will see other options, select Other reportable income. On the screen where you enter a description and the amount, you may see information indicating that a 1099-Misc should not be reported in this section.  Ignore that statement and continue through the application.

The other option is to report your 1099-Misc in the section Other Common Income.  Other Common Income has an option specifically for Form 1099-Misc.  There are a few more screens to work through here versus the Less Common Income section; however, the screen(s) are more closely aligned with your Form 1099-Misc.  Please note that when working through the Other Common Income section, you will see a screen asking whether your 1099-Misc represents an intent to earn income/money, and while it may seem counterintuitive to select No, that is the response you need to select.  If you select Yes, TurboTax will report this income as self-employment income, and based on the comments in your post, your 1099-Misc does not represent income from self-employment.  

Either of these options will produce the result you want.  Although the latter option has a few more screens.  Your 1099-Misc income should appear on line 8 of Form 1040. 

@HillsideBruce 

[HillsideBruce]

I ended up doing the second option that @GeorgeM777  mentioned below... 

I first deleted the 1099-MISC form and associated Schedule C that had been automatically created.

Next, I added back in the 1099-MISC for Celsius, but this time I went into the form (1099-MISC wks for Celsius)

and under Box 3, I checked Other Income and that unchecked Schedule C (I think) in that same Box 3 options.

I forget if I had to also delete a Schedule C form for Celsius that Turbo Tax might have created.

But now when I run the check for mistakes - it comes up with no mistakes.  Yaaaayyyyyyy!!

Now all I need to do is work on some additional areas I flagged, AND work on massaging CSV files for input into ZenLedger for my taxable crypto transactions - something that should be simple, but last tax season I had big problems with this (CSV file massaging) and ended up getting assistance from ZenLedger support... This tax season, ZenLedger support is telling me that they can help, but it will cost me to get that CSV file help...

But the happiness is out there - not too far away from here, when I will hit that button to e-File my taxes, and hopefully they get accepted and hopefully I don't get audited and it will be clear sailing... 

PS Doing my taxes every year, even with the assistance of one mighty fine Turbo Tax product (that I have used the past umpteen yeaers) - is about the last thing I would want to be doing... No offense to anyone out there that does taxes professionally (my Dad used to do tax returns as a small business during tax season, with his brother, in New York City - MANY MANY years ago)...