1099-Misc Royalties from Robin Hood

[Nachoha]

So I Imported my 1099's From RobinHood, one of them was a 1099-Misc saying I had earned $0.33 in Royalties. Turbotax is insisting that this can only be from "Investment income from property you own" or "Royalty income from your business, including artist royalties or operating a natural resources business" neither of which applies in this case. The first option insists I do a form E and enter info on the business I own which I don't, the 2nd insists I start a Form C for the Business I own, which I don't.

[ErnieS0]

Delete the 1099-MISC. You do not have to report it. The IRS says to round off numbers, drop amounts under 50 cents and increase amounts from 50 to 99 cents to the next dollar. For example, $1.39 becomes $1 and $2.50 becomes $3.

[Nachoha]

It won't let me. Because I did the Auto-Import from Robin Hood it gives me a "Form Not Reported" and starts walking me through the above problem. The 1099-Misc is not listed anywhere for me to delete.

[Nachoha · Accepted solution]

I Just changed the .33 to 0 and it let me proceed.

[pstaylor659]

I have the same issue only from Fidelity 1099 Misc for $21. It won't let me proceed without a Sch C or Sch E

[LenaH · Accepted solution]

Once you enter your 1099-MISC, 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 on a Schedule C or Schedule E. 

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 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 confirm your 1099-MISC went to Other Income on your 1040.

1. Click on Tax Tools on the left hand side.
2. Click on Tools.
3. Click on View Tax Summary.
4. Click on Preview my 1040 on the left hand side.
5. Search for Schedule 1 - Additional Income & Adjustments to Income.
6. A description of your Other Income and the amount should be listed in Line 8. 

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. 

@pstaylor659

[ostate100]

After i go past where you enter the income, the only options i have are "investment income from property you own" and "Royalty income from your business, including artist royalties or operating a natural resources business (Schedule C)" What do i do? neither of these apply to me.

[wlbeachboy]

2 years later and I spent an hour and a half gathering headaches trying to understand and report this same income situation, to the sum of $0.01. Was ready to stop filing and get an expert to do it for me, found this answer and it fixed the issue, thanks for helping.

[musiccitylove]

I can't agree more, it takes hours to figure that out.. just round it to 0..