1099-Misc and Unemployment Taxes on Non-Employment (2020)

[Haribo]

Hello!  I am trying to enter misc income for keeping land sustainable.  So there is no employment or company involved, but Turbo Tax keeps trying to put in unemployment tax on this income.  I tried to do the "jump to" from previous years directions so I can enter this income in manually, to avoid the schedule 1 and self-employment tax, since I did nothing to earn the income besides own the land and not build on it.  How can I enter this income without paying unemployment tax on it since it's not employment?

Help!  Any suggestions?  Thanks!

[ColeenD3]

You must get the money for some reason connected to the land. Someone is paying you and you generally don't get paid when, " I did nothing to earn the income besides own the land ".

To determine how to enter the income, we would need to know who is paying you with a 1099, what box the income is in, and why are you receiving the money.

[Haribo]

Nope, I just own the land. The land is Sustainable Forest Act money from the state of Minnesota.  No boxes, just says Misc Income. 

Thanks!

[ColeenD3]

You can add it as Other Income.

• I'll choose what I work on
• Less Common Income select Start (or Update) for 
• Miscellaneous Income.
• Other reportable income and you can enter your own description(s) and amount(s).

[Haribo]

Hello!  When I do what you suggest it says it needs to be linked to another schedule.  We've been getting this for years and have never had this problem.

Thanks!

[ColeenD3]

You did this:

• Less Common Income

Home sale, canceled debt (1099-C, 1099-A), 1099-SA, gambling, etc.

• Miscellaneous Income, 1099-A, 1099-C

• Other reportable income

[Haribo]

Hello!  I did all of that a few times and the system automatically puts it on a Schedule C.  The form from the State of MN says if you are an individual it goes on Schedule 1.  It says "The "Other Income" line of federal Schedule 1.  Identify the income as "Sustainable Forest Incentive Act".  I cannot get turbo tax to let me do a Schedule 1 instead of C.  :(

[LenaH · Accepted solution]

If a Schedule C continues to populate, it is important that you answer the questions that follow the entry screen for the 1099-MISC. If answered correctly, you will also be able to have this income flow to Other Income, rather than self-employment income. 

Please follow the instructions below:

1. Open or continue your return, if you're not already in it.
2. Search for 1099-misc and select the Jump-to link.
3. Edit your 1099-MISC.
4. Continue past the amounts already entered.
5. Describe the reason for this 1099-MISC.
6. Answer None of these apply on the screen Does one of these uncommon situations apply?
7. Answer No, it didn't involve work like my main job for the question Did this involve work that's like my main job?
8. Answer You got it in 2020 for the question How often did you get this income?
9. Answer No, it didn't involve an intent to earn money for the question Did this involve an intent to earn money?
10. Answer the remaining on-screen questions.
11. Your 1099-MISC will flow to Other Income.

Next, please make sure to delete any Schedule C or associated self-employment forms in your return.

1. Search for Schedule C with the magnifying glass tool on the top of the page.
2. Select the Jump to Schedule C link in the search results.
3. Select No to the question Did you have any self-employment income or expenses? 
4. Click on Tools.
5. Click on Delete a Form. 
6. Scroll down to your forms and look for forms you need to remove and click Delete. 

@Haribo

[Haribo]

That worked!!  Thank you so much!