1099 misc

[Phillip23]

I received a 1099 misc form for miscellaneous income. The transaction type is contract fee. Where to I input the information using turbo tax deluxe? 

Thank You

[PattiF · Accepted solution]

It depends, if the miscellaneous income was recorded in Box 3, you will enter this as Other Common Income.

Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported as "other income" instead of as business income. 

1. In the Search box type "1099-misc" (without the quotes), then click the link that says "Jump to 1099-misc."
2. The first screen asks "Did you get a 1099-MISC?" Click Yes.
3. On the next screen enter the information from the 1099-MISC form, then click Continue.

TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.

• "Describe the reason for this 1099-MISC." - Enter a short description such as "contract fee." Click Continue. You will see this description used in some of the subsequent questions, but it will not appear on your tax return.
• "Does one of these uncommon situations apply?" - Select the last choice, "None of these apply," and click Continue.
• "Did the contract fee involve work that's like your main job?" - Select No and click Continue.
• "How often did you get income for contract fee?" - "I got it in 2022" will already be checked. Don't check any of the other boxes. Just click Continue.
• "Did the contract fee involve an intent to earn money?" - Select No and click Continue.

[Phillip23]

thank you very much for your help. 

Phil

[BlueEdge]

Sorry to bum off the thread - So I also have a 1099-MISC

However when I go to smart check it makes me fill out a Schedule C (Form 1040) which from what it seems it makes it seem like I own the business when I was just paid for my work? Eg "If this business was operated by Taxpayer, check this box" - I can't uncheck the box. 

[KrisD15]

To clarify, why were you issued a 1099-MISC?

Work is usually done by either an employee (W-2) or a contractor (1099)

When a person is an employee, the employer takes care of FICA (Social Security Tax)

When a person is a contractor, they are responsible for the FICA (Self-Employment Tax)

Usually when a person receives a 1099, they are self-employed and need to file Schedule C.

[BlueEdge]

Thanks for the reply!

I did this for answering medical surveys. I've had 1099-MISCs in the past but have never needed to do one of these forms? I guess I am a contractor? But doing this form does it mean I am some kind of enterprise?

[PattiF]

You can enter the form as other income that is not self-employment. People do sometimes receive Form 1099 when not self-employed.

You would report the 1099-MISC as Other Income by following these steps:

1. Open your return.
2. Click on Federal Taxes.
3. Go to Wages & Income
4. Scroll to the bottom under Less Common Income and select Start (or Update) for Miscellaneous Income.
5. Choose the appropriate category and enter your Other Income
6. On the following screens, answer the following questions:
   • Did it involve work that's like your main job? No.
   • You got it in 2022
   • No, it didn't involve an intent to earn money
   •   Continue through the rest of the interview screens. The income will appear as Other Income

@BlueEdge 

[NC-tax-mom]

I received a 1099 Misc and completed the form with the box 3 income, which transferred to Schedule C just fine.  But cannot complete my taxes because I keep getting this error message "A link to Schedule C should not be linked when the MWP...."   There is no such link, and I've read elsewhere that this error has been reported, but I've not been able to do the suggested work around.  Please help.  Do I continue to wait for an update that fixes this???  I'd like to finish my taxes. I'm using TT Premier 2022 for Mac.

[AliciaP1]

You are not required to enter a 1099-MISC specifically into your tax return as long as all the income is reported correctly.  You can delete your 1099-MISC Form from your return and re-enter the income.

To enter your income to your business in TurboTax Desktop you can follow these steps:

1. Sign in to your TurboTax account
2. Switch to Forms Mode by selecting the Forms icon
3. From the menu, select the form you want to remove (if you don't see it, select Open Form at the top)
4. From the Forms menu, select Remove [1099-MISC]
5. Follow any onscreen instructions to remove the form or forms
6. Search for self employed income (use this exact phrase, don't add a hyphen) and select the Jump to link at the top of the search results
7. Answer Yes on the Did you have any self-employment income or expenses? screen
   • If you land on the Your 2022 self-employed work summary page, select Review next to the work you're adding income for
8. Answer the questions on the following screens until you arrive at Let's enter the income for your work
9. Scroll down to the Income section and click Add income for this work
10. Choose Other self-employed income and Continue
11. Proceed entering/reviewing your return.

@NC-tax-mom 

[NC-tax-mom]

Is it OK to click No when asked if I received a 1099 Misc?  If I say Yes, it cycles me back to that endless error message.

[AliciaP1]

Yes, you just need to enter the income, but are not required to report the specifics of the 1099.

@NC-tax-mom 

[dandsdodd]

Sorry to hi-jack but....

I received a 1099-NEC from a company that that terminated my employment and later settled based on an age discrimination claim. It seems like I should have received a 1099-MISC instead. 

When I enter the 1099-NEC, TurboTax wants to add it as compensation and as a second business. How should I handle this?

Thx

[MayaD]

Yes, since the funds were for a settlement and not non-employee compensation, you should have received a 1099-MISC instead of 1099-NEC. You should request the payer to provide a corrected 1099. 

[dwg711]

Thank you. I hope TT will now stop treating this income as a business

[Ed732]

where do i enter investment losses shown on form 8949?