How do I enter an income for Schedule 1 on line 8z Other Income?

[jannethu]

Really need help!  I didn't have this issue for the past few years.  I have a form 1099-Misc, which has some sort of distribution of coupon interest from securities where the distribution of interest is treated as Ordinary Income (but not Capital Gain).  In the past few years, when I chose "None of These Apply" when turbos tax asked the type of the income (e.g. farm, rental, prize) , that income will be put onto line 8z as Other Income on Schedule 1.  But this year, Turbo tax continues to put it onto Schedule C and also Schedule 1 as business income or loss. Whatever description I put for this income, as long as I chose "None of These Apply" when asked the type, it will go to Schedule C.  How can you fix this or where to manually enter this onto Schedule 1 Line 8z

[DoninGA · Accepted solution]

After completing the Form 1099-MISC in the program the interview will ask you How often did you receive these Payments?  Only choose tax year 2022 and not any other years.  Then answer No to the question about the intent to earn money.  

The program will then enter the amount from box 3 of the 1099-MISC on Schedule 1 Line 8z

This is assuming the income was reported in box 3 of the 1099-MISC and you have already answered NO to the question about payment involving work like from your main job.

[Critter-3]

Enter this Miscellaneous Income:

1. Click on the Federal tab.
2. Click on Income & expenses.
3. Scroll down to Less Common Income.
4. Click on Start or Update button Miscellaneous Income, 1099-A, 1099-C
5. On the next screen (Let's Work on Any Miscellaneous Income), click the Start or Update button for Other reportable income.
6. Did you receive any other taxable income.  Click Yes.
7. Other Taxable Income, enter a description and the amount.  Click Continue.
8. Click Done.

The income will be reported on Schedule 1 line 8 (z) with the description that you entered.

[DoninGA]

@Critter-3 Yep...Keep forgetting about that procedure.  Thanks.

[Critter-3]

Glad this short cut still works. 

[Hal_Al]

Either of the above methods will work.  So, they are both correct.

If you use the 2nd method ("Less Common Income"), I suggest you get "1099-Misc" in the description, e.g. "interest income reported on a1099-Misc".  That way, the 1099-Misc, you received, gets mentioned on line 8z of Schedule1. 

[jannethu]

😀Thank you so much!  I just filed my tax, finally.  My tax situation changed a lot for 2022.  I fixed so many problems in the past few weeks and today I was stuck again in the last bite.  I appreciate your help and in such a short time.  You are all level 100.  Happy July 4th!!!!

[jannethu]

Thank you!  🍷

[karinm1971]

Hi -- I'm trying to figure out this same thing. When you say "After completing the Form 1099-MISC in the program the interview will ask you...," where in Turbotax are you referring to? I'm assuming in the "Miscellaneous income" section?  Which subsection?

Thanks,

Karin

[karinm1971]

Hi! I'm dealing with this, too. I went through this sequence of steps and successfully entered the info, but it never asked for any information from my 1099-NEC? I assumed that it would. Should I have chosen another subsection in "Miscellaneous income"? I tried one, and had the same experience as the original poster where Turbotax wanted to associate that income with a business and put it in Schedule C. But I have a 1099-NEC for truly miscellaneous income.

Thanks, Karin

[Hal_Al]

If you got a 1099-NEC, it's a little different.

In TurboTax, Enter at:

- Federal Taxes tab

 - Wages & Income

Scroll down to

  -1099-Misc and Other common Income

      - Income From form 1099-NEC

When you reach the screen "Does one of these uncommon situations apply?", Check the box "This is not money earned as an employee or self employed individual; it is from sporadic activity or hobby".

Checking that box will put the income on line 8z (other income) of Schedule 1 as "Nonemployee compensation from 1099-NEC".

[karinm1971]

Thank you so much! I went down this path before and ended up with Turbotax wanting to put this on Schedule C and create a business, and I did not see the "sporadic activity or hobby" then. Thank you for your quick reply!

Karin

[VolvoGirl]

@karinm1971   What did you get the 1099NEC for?  It normally is for self employment income which is filed on Schedule C.    You might need to go back to the issuer and have them file it on a 1099Misc and void the 1099NEC.  

[Hal_Al]

The IRS considers anything on a 1099-NEC to be self employment income. TurboTax (TT) aggressively steers you in that direction, even if the amount is on a 1099-Misc. If you try reporting 1099-NEC income as anything else, you chances of hearing from the IRS are  higher.

That said, yours is a common situation and the "sporadic activity" is the most recommended way to go, in this forum. 

[fanfare]

The real question: How do you make entry on that line without a 1099-MISC ?

@Hal_Al