1099-MSC

[fjtayls]

My granddaughter got a 1099-MSC for a college internship program.  Since this was not for a sole-prop. business why is a schedule C required - or how to enter the info without a Sched C being required?

[RayW7]

The minimum income amount for filing in 2020 depends on your filing status and age. In 2020, for example, the minimum for single filing status if under age 65 is $12,400. If your income is below that threshold, you generally do not need to file a federal tax return.

However, you have to file an income tax return if you make at least $400, from what the IRS considers self-employed income. Self-employed income is reported on a 1099-MISC form, which is what you have.

The IRS has copies of your 1099-Misc forms.  If you do decide to file a return, you should include them.

Since the income was reported in Box 3 on a 1099-MISC it should be reported as "Other Income".

I agree with the post from ColeenD3. 

[edited 3/24/2021| 2:05pst]

@fjtayls 

[fjtayls]

the income was reported in box 3 - other income.  Since it is for a three-month internship - should the business information be that of the company where the internship was performed?  Or, should we create a quasi-company for her as a three-month consultant and use her college address as the address of her "company" or use her home address?

[fjtayls]

Since it was for an internship program, why wouldn't it be reported on line 8 as other income - 

using schedule 1 line 3b - other income from 1099-MSC line 3?

[ColeenD3]

Income from a 1099-MISC in Box 3 is other income.

You can enter the 1099-MISC in TurboTax as "Other Common Income," which is reported on line 8 of 1040 Schedule 1.  Please use the following steps:

1. Click on Federal > Wages & Income.
2. Scroll down to the Other Common Income section. 
3. Click on the Start/Revisit box next Form 1099-MISC. 
4. On the screen Did you get a 1099-MISC?   Yes 
5. Enter the information from the 1099-MISC.
    
6. On the following screens, answer the following questions:
   • Did it involve work that's like your main job? No.
   • You got it in 2020
   • No, it didn't involve an intent to earn money