Robinhood 1099-MISC has $7 in Box 3 “Other Income” (dividends from my ETFs). Is this really ‘self-employment’ (investing)? Seems like “intent to earn money” is true?

axup · ‎February 22, 2020

Critter · ‎February 22, 2020

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 2019 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 8 with the description that you entered.

axup · ‎February 23, 2020

Thanks. Some things appear to be out of date here.

Corrections:

- On mobile web browser you have to click ‘add Income’ button before getting the extra options.

- Misc-income item doesn’t list 1099-MISC (design flaw)

- On the ‘Other Taxable Income’ it specifically states: “ Do not enter income reported on Form 1099-MISC.” I am presuming I should not proceed with entering this amount here? If not, where?

I am not sure how to proceed currently.

This part of the TurboTax is very confusing and really pushes users down the ‘self-employment’ track which seems inaccurate.

Labutin · ‎February 23, 2020

I have also receiver 1099-Misc from the Robinhood for $7.

I am H1B and can't be self-employed!

Turbotax tried to report that $7 as self-employed income. How to fix this?

Critter · ‎February 24, 2020

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 2019 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 8 with the description that you entered.

axup · ‎February 24, 2020

Critter, you appear to be copy/pasting answers that are out of date. I have already listed the issues with this answer above and I have not received an answer to them yet. It looks like Intuit isn’t responding to tax questions in a timely manner, so I guess I’ll have to pay for personal tax advice at this point.

JamesG1 · ‎February 24, 2020

Follow these directions to post 1099-Misc, box 3 income not subject to self-employment taxes.

Down the left side of the screen, click Federal.
In the center of the screen, click Income & expenses.
On the screen Your income and expenses, 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 Schedule 1 line 8 with the description that you entered.

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axup · ‎February 24, 2020

JamesG1,

Are you reading the replies to other answers above?

”

Some things appear to be out of date here.

Corrections:

- On mobile web browser you have to click ‘add Income’ button before getting the extra options.

- Misc-income item doesn’t list 1099-MISC (design flaw)

- On the ‘Other Taxable Income’ it specifically states: “ Do not enter income reported on Form 1099-MISC.” I am presuming I should not proceed with entering this amount here? If not, where?”

Are you saying we should disobey the advice on the last step and enter info from the Form 1099-MISC even though it explicitly says not to?

axup · ‎February 24, 2020

Problem with step 2 in your instructions.

“In the center of the screen click Income & Expenses”.

Log in via Safari browser on an iPad.

After logging in click ‘Federal’.

There is not an item called ‘Income & Expenses’.

There IS a tab called “Wages and Income”.

I think either the UI has changed, or your instructions are out of date, or both. Perhaps this is the ‘desktop’ UI and not the mobile-friendly version of your UI? Both need to be supported.

This is not the only item in the instructions that is out of date.

Please review and provide a working strategy for this please.

Critter · ‎February 24, 2020

So a couple of the headings were slightly off ... but the general info was correct ... see the updated info in the other answer.

axup · ‎February 25, 2020

Critter, you aren’t answering questions in the replies.

RE: the last step of your instructions.

On the ‘Other Taxable Income’ it specifically states: “ Do not enter income reported on Form 1099-MISC.”

You are suggesting we disobey the advice of TurboTax and enter info front he 1099-MISC box 3 anyhow?

Are you sure this is legal?

jasonsbacon · ‎February 25, 2020

when it asks you need to check the box that says you did not intend to make money, then it wont be self employment income. you didnt work for it, it was just an incentive, if i understand correctly. this worked for me.

Critter · ‎February 25, 2020

28 years in the business so I know that box 3 of a 1099-misc CAN be on line 8 of Sch 1.

jasonsbacon · ‎February 25, 2020

No doubt about that critter but a promotional incentive does not constitute self employment. The op did not do any work or invest anything to receive the incentive therefore there was no intent to earn money. This is my understanding anyway.

Critter · ‎February 26, 2020

Which is why it goes on line 8 of the Sch 1 and NOT on the Sch C.

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Robinhood 1099-MISC has $7 in Box 3 “Other Income” (dividends from my ETFs). Is this really ‘self-employment’ (investing)? Seems like “intent to earn money” is true?