I have a 1099-Misc. the amount is listed in box 7. It should be included as other income line 21 on 1040 . How do I show this on line 21 other income on form 1040?

[hate-taxes4]

This 1099-misc is a result of a retiree contract for legal services from General Motors Legal Services plan Trust and does represent work related income.  It should be reported on Line 21 other income on 1040.  How do I report this correctly

[BMcCalpin · Accepted solution]

Box 7 on the 1099-MISC is for non-employee compensation, that is, earned income that is not earned as an employee. This is reported on Schedule C.

I can't tell if you meant to write "and NOT does represent work related income."

If this is not earned income (i.e., you didn't work for it) but is something like a union benefit, then do the following:

To correctly enter the 1099-MISC so that it does not prompt a Schedule C, take the following steps:

• In your open Federal return, choose the tab for Wages & Income
• Tab through or down to Other Common Income (you may have to choose Add more income and then See more income to view this topic) and then Show More
• Start/Revisit Form 1099-MISC
• Edit the 1099-MISC if you already entered it, or Add it now and enter the information on the form, then Continue.
• On the screen Describe the reason for this 1099-MISC enter your description: Union Benefit.
• On the screen Does one of these uncommon situations apply? choose None of these apply.
• On the screen Did the [Description] involve work that's like [Name's] main job? answer No.
• On the next screen, choose the year you received the money.  (In this case, 2018.)
• On the screen Did the [Description] involve an intent to earn money? choose No and complete the interview.

This will place the 1099-MISC on Schedule 1, Line 21,

[bmerchant]

See https://ttlc.intuit.com/community/business-taxes/discussion/if-i-received-a-1099misc-for-a-professio...
PaulaM
Employee Tax Expert
June 1, 2019 10:57 AM
Ordinarily 1099-MISC box 7 non-employee compensation is considered self-employment income and entered on a schedule C. 

However, the 1099-MISC form instructions say 'If you are not an employee but the amount in this box is not SE income (for example, it is income from a sporadic activity or a hobby), report it on Form 1040, line 21.
Select Less Common Income, Miscellaneous Income. Then select Other Reportable Income and enter the description and amount. Enter something like 'Professional award reported in box 7' or something similar.
You will see a warning not to enter a 1099-MISC. That is because it is usually self-employment income. But in your case, this is where it belongs. Delete the 1099-MISC if you have entered it elsewhere.
https://www.irs.gov/pub/irs-pdf/f1099msc.pdf

[Critter]

Since the amount in box 7 for this income is usually way less than $400 you can simply enter the income on line 21 which is where is belongs ... 

You can report it as other income on Sch 1  line 21. Here's how to enter it in TurboTax.

• Click the Federal Taxes tab ( Personal in the Home & Business version)
• Click Wages & Income. (Personal income in the H & B version)
• On the screen "Your 2018 Income Summary," scroll all the way down to the last section, "Less Common Income."
• Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
• On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."
• The next screen asks, "Did you receive any other taxable income." Click Yes.
• On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.
• On the next screen click Done.

The income will be reported on Sch 1 line 21 with the description that you entered.

[BMcCalpin]

This sequence shows one of the hazards of a multi-year, multi-product bulletin board. I assume that bmerchant's post was triggered by noticing that my answer did not exactly match Paula's (and later Critter's).

You may not be aware, but many of the answers in the old support system were ported to the new Community in late May and June of 2019. Unfortunately (in my opinion), the dates for these posts and the replies were reset to the date that they were ported over to the Community. Thus, a question asked in 2017 for a 2016 tax return could potentially show a date of June 4, 2019 - and you would have no way to know that the answer was out of date.

My answer was correct for the tax year and version of TurboTax - it was for tax year 2017, and it appears to me that it was either for the desktop Home & Business product or the Online version (which is called Self-Employed now but may not have had a different name for the 2017 tax year).

I suspect that there will be a lot of this confusion going forward.