Received 1099-MISC solar

[greatgoogly]

I have solar panels on the roof of my home. I received a 1099-MISC for about $1500 in solar credits that a broker sold on my behalf. This is a yearly occurrence.  I've done this the last 4 years and never had a problem. This year Turbo Tax is giving me all sorts of errors. Looking for a "Principal Business Code" for which I have no idea what to enter and highly suspicious that even if I find that, they are  treating this like a business and hence will be looking for self employment taxes and other garbage.

It's a rabbit hole of bureaucracy. This didn't happen last year or the year before that. It is incredibly frustrating. 

[MonikaK1]

If you are prompted to select a Principal Business Code, then yes, the program is setting up a Schedule C business. You can delete the 1099-MISC that you entered (click on the trash can icon that appears next to the income entry).

To enter income from a Form 1099-MISC that is not from working, in TurboTax Online, enter Form 1099-MISC information in the section to which it pertains. In Wages and Income, there are several locations where you can enter a Form 1099-MISC.

If you enter Form 1099-MISC in the Other Common Income section, at the screen "Does one of these uncommon situations apply?", a list of options appears from which you can select that includes reasons for Form 1099-MISC other than self-employed income.

In the alternative, you can enter the amount under Other Reportable Income. In TurboTax Online:

1. Go to Wages and Income
2. Scroll down to Less Common Income
3. Go to Miscellaneous Income
4. Select Other Reportable Income and follow the prompts. Enter a description for the reason for the payment.

See here for another discussion involving a similar topic.

[greatgoogly]

When I go to "other reportable income" it states specifically "Do not enter income reported on 1099-MISC" 

[MonikaK1 · Accepted solution]

You can enter the Form 1099-MISC and identify that it was not income from working so that it doesn't get misclassified as self-employment income:

1. Select Income from Form 1099-MISC under Wages and Income.
2. Enter the payer information and dollar amount
3. Enter a description for the payment
4. When asked about Uncommon Reasons, select that none apply or select one that adequately explains the reason
5. When asked about the frequency of payment, select received in 2022
6. When asked "Did (description) involve an intent to earn money?" answer No (that is, it is not earned income and therefore not subject to self-employment tax)

[greatgoogly]

Thank You! This appears to work!