I received a 1099-MISC for Capital Credit Refund from a Co-Op for my parent's account upon their death. The refund was for money they paid 100% for residential services, and never deducted from their taxes. The Co-Op suggests I just not enter the 1099-MISC information, but, instead include a written statement referencing the amount, payor info, including FEIN and why I did not include the income. How do I include that statement in TT Deluxe? Will I still be able to e-file? I initially entered the info as income and then added an "other income" entry with an equal NEGATIVE number to bring the net amount to $0. When I attempted to do that, my return became ineligible for electronic submittal. I would like to use the e-file method if possible.
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If this is the only income that you're reporting on your return, you will need to make an adjustment to show at least $1 of income so that you can e-file. Otherwise, the IRS will not allow the return to be filed electronically.
Typically, people will report $1 of interest in these cases. You can also change the negative amount you reported as other income so that it shows at least $1 of income.
Because the Capital Credit Refund was reported on Form 1099-MISC, the IRS will expect to see it as income on your tax return. So you'll need to enter it in TurboTax, then make an adjustment to offset the amount.
To do this in TurboTax Online:
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To enter the adjustment in TurboTax Online:
If the TurboTax Online navigation described above doesn't look like what you're experiencing, see the TurboTax Help article Why does the TurboTax navigation menu look different for me?.
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Hi, Thanks for replying. However, this is the exact procedure I followed. As a result of using this technique, Turbotax reports that since I entered an amount less than $1, I cannot e-file and must file a paper copy. Filing through the mail is what I am trying to avoid. So, I am still looking for an answer that allows me to negate the income reported on the 1099-MISC and still e-file.
If this is the only income that you're reporting on your return, you will need to make an adjustment to show at least $1 of income so that you can e-file. Otherwise, the IRS will not allow the return to be filed electronically.
Typically, people will report $1 of interest in these cases. You can also change the negative amount you reported as other income so that it shows at least $1 of income.
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