What to do with 1099-MISC that is for regular full-time work but not for self-employment?

[yuyunfan]

I was issued a 1099-MISC in addition to W-2 from the same employer. I stopped working for that employer, and according to payroll, 1099-MISC was meant to cover my pay in the "final paycheck waiting period" from which tax was not withheld, which was because my final check was not processed in time based on my state's regulations. I would think this is for income for my regular work of my full-time employment just like what is reported on W-2.

After I entered it on "Form 1099-MISC" (the amount is in Box 3 of Other income) under "Other Common Income", an item "Self-employment income and expenses" appeared for me to review in which I am asked to fill in information that looks odd to me, as if I were self-employed. Since I was not really self-employed and the income reported on 1099-MISC was for work performed during my full-time employment as mentioned, what should I do to proceed?

BTW, I am a resident alien and my nonimmigrant status does not allow real self-employment. Therefore, I would like to handle this cautiously to avoid troubles later on.

[HelenC12]

@yuyunfan  Please dismiss my previous reply. That post is for a taxpayer that meets the requirements to file Form 1040.  If you are required to file a 1040NR , please use our affiliated partner, Sprintax to complete your 1040-NR filing. 

[Edited 2-27-2020|8:39 am PST]

[yuyunfan]

@HelenC12 I am a nonimmigrant but am considered a resident alien for tax purposes. Therefore, I should file 1040. Your advice is greatly appreciated.

[Irene2805 · Accepted solution]

In order to report the 1099-MISC and not create a Schedule C, please follow these steps:

1. Click on Federal > Wages & Income.
2. Scroll down to the Other Common Income section. 
3. Click on the Start/Revisit box next Form 1099-MISC. 
4. On the screen Did you get a 1099-MISC?  click on the Yes button.
5. On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.
    
6. On the following screens, answer the following questions:
   • Did it involve work that's like your main job? No.
   • You got it in 2019
   • No, it didn't involve an intent to earn money

 7.  Continue through the rest of the interview screens. The income will appear as Other Income.

[yuyunfan]

@Irene2805 Thank you for the detailed instructions. When I followed them, Schedule C was not created. However, to clarify, is that the right thing to do based on my situation? The answers to the questions do not sound like reality:

• Did it involve work that's like your main job? No. --- In reality, it was my main job and only job.
• No, it didn't involve an intent to earn money. --- Since it was my job, it did involve an intent to earn money.

I would like to make sure that the steps instructed are not just meant as a workaround to not create a Schedule C, but also legitimate in terms of tax compliance.

[Irene2805]

I understand your concern.  The questions are not ones asked by the IRS.  They were devised by the TurboTax programmers to get the program to put numbers in the right place.  In your case, a Schedule C should not be created, so that's why I suggested the answers I did.

[yuyunfan]

Thank you for your clarification. This helps a lot!

[Kirby2020]

I had trouble with the 1099 misc filing but your post clarified the issue.