1099 Nec

[sandy613]

I am reviewing my taxes and there is an issue with the 1099 nec.  I received it because I participated in a medical study.  I do not have my own business and this is not an ongoing thing.  The review says I need to link the 1099nec to Schedule C or F but not both.  I don’t know how to proceed.

[MayaD]

You will enter your info under "Other Income".  

In TurboTax online,

• Sign into your account, select Pick up where you left off
• Type other reportable income in the search box 
• Select Jump to other reportable income
• On the screen Other Wages Received, select No to continue
• Next screen, scroll down to Other reportable income, select Start
• Next screen, Any Other Taxable Income? select Yes to continue

[sandy613]

I am using the download version.  I don’t see any of the things that you are mentioning.  If I go into search and type Other Reportable Income, various questions come up but there is no “jump to” option.

[MayaD]

In TurboTax CD/Download:

1. Go to Wages an Income.
2. Select I'll choose what I work on.
3. Scroll down to Less Common Income
4. Click Start Next to Miscellaneous Income.
5. Scroll Down to Other Reportable Income. 

[sandy613]

I followed your instructions.  Now I get less of a refund for Federal and owe more to the State.  I suspect this is because this income is now listed under both 1099Q and Other Common Income and Less Common Income sections.  Additionally, I still get the same message about Schedule C and F.   It wants me to choose for Schedule C the Accounting Method.  My choices are Line F Cash Box, Line F Accrual Box, and Line F Other Box.

[JamesG1]

MayaD has given you the correct instructions for entering the medical study income and not invoking self-employment income issues.

If the income has been reported elsewhere in the tax return (1099-Q or elsewhere), please remove the income there.  That or those entries must be invoking Schedule C, Schedule F, etc.

[sandy613]

Thanks!  So that means, that I should remove the 1099nec form information even though this income was reported on a 1099nec form.  If so, why?

[DaveF1006]

Yes, remove the 1099 NEC where you originally recorded the information and then add it back in using the precise procedures that MayaD outlined above.

[sandy613]

It worked.  Thanks!  Now I am working on some other Fixes.  It is asking me to fill in Schedule IT-2210, line F for Prior Year’s Taxes.  Do I just look at what I paid in 2020 to the State?  This seems self explanatory but I pay quarterly taxes so I was not sure if I should get that number from somewhere else.

[LenaH]

Your prior year Indiana tax would be on your Form IT-40, line 11. This is different from the amount you paid to the state. 

@sandy613

[sandy613]

Perfect, thanks!