Why do I need Form 8995-A?

[JamesLynn]

The only problem with what you answered is that I never received a 1099 Misc. statement from anyone.

JimLynn

[Cris0910]

My daughter received a 1099-Misc with income stated only in Box 3.  This income was for an REU (Research Experience for Undergrad).  TT generated Form 8995 with all zeros.  I tried to delete to no avail.  Please advise.  2nd question:  Since she resides in Texas but did the REU in Michigan, does she need to file a Michigan state income tax form?  Thank you so much for answering!

[NM1]

Does your daughter have enough total income to be required to file at all?

[DawnC]

The empty 8995 should not cause an issue as long as the income is reported as ordinary income and not as business income.   Can you verify what line the income is reported on the Federal Form 1040?    Here are the instructions for deleting forms, but there is probably something else that needs to be deleted first to get rid of the 8995 completely.  

How do I view and delete forms in TurboTax Online?

How do I delete a tax form in the TurboTax CD/Download software?

Michigan Nonresident = A person whose permanent home for the entire year was in another state is a nonresident.  Michigan income tax must be paid on income earned from Michigan sources.

Nonresident Students - Out-of-state students who live in Michigan while they are attending school are not considered Michigan residents or part-year residents and should file as nonresidents.   

Enter her information as a Texas resident.  Indicate that she did earn income in another state (MI) and let TurboTax determine if he needs to file a state return - it depends on her total and MI income.  She does not have to file a return if she does not owe tax or is not due a refund.  @Cris0910      @Cris0910

[Cris0910]

Thank you.  The 1099 Misc income is reported on line 7a.  This generated a Schedule 1 and Form 8615 which I understand.  But the Form 8995 has zeros.  

[Cris0910]

I went through the proper steps to delete the form but to no avail.  Since form 8995 only has zeros, it was said this should not cause an issue.  The income received was for an REU "research experience for undergrad" and was labeled as "other income" box 3.  The only thing I can think of is one TT representative initially had me name the business so it generated this form.  I cannot clear the form and start over since I already paid.  Just wanting clarification I can go ahead and file with a "zeroed form 8995"?

[Cris0910]

Yes.  I cannot delete the form or clear/restart but in another post @DawnC mentioned a zero-filled form shouldn't matter.  Is it ok to file as is?  The income is labeled "other" and does not pertain to business income even though it is on a 1099 Misc.

[DawnC]

Go ahead a attempt to submit the return.  That is the only way to know if the empty 8995 will cause a problem or not.    If it gets rejected, we can try something else.

However, before you submit it, there is one thing you mentioned that should be double-checked.   The income should be listed as other income on Line 7a,  which you confirmed.  But you also said that another rep told you to enter the ''name of the business'' - and I am pretty sure that is causing the 8995 to appear.    You should not have any '''business'' info reported, not even a business name.  You will need to look at Schedule 1 to verify the income has been reported correctly.  

So double check that the income has not been reported twice or that you do not have an empty Schedule C.    Look at your Schedule 1 - Is the income on Line 3 or Line 8 - - It should be on Line 8 of Schedule 1 - not on Line 3 which is for business income.  

See this link for instructions on how to delete the Schedule C 'business' return.  You don't need it - the only place the income should be listed is Line 7a of your Form 1040 (Other Income from Line 8 of Schedule 1).    Then submit your return and wait to see if it gets accepted or rejected.    

@Cris0910

[DawnC]

What is on Line 8 of Schedule 1?   What about Line 3 of Schedule 1?     @Cris0910

[Cris0910]

The other income is reported on line 8 of schedule 1.  Thanks for your assistance!

[Cris0910]

@DawnC The return was accepted.  Thank you and have a blessed day!

[Brimi20]

715511

[MarilynG1]

@Brimi20 Do you have Schedule C or Schedule E in your return?  

Click this link for more info on why you may need Form 8995.

If you believe this does not apply to you, try deleting Form 8995 from your return.

This link tells How to Delete a Form in TurboTax Online.

[64dancer]

Line 2                                                                 616

Line 7                                                            19,875

Line 8                                                          100,000

Line 9 - Divide Line 7 by Line 8              S/B  0.1988, but Turbo Tax fills in 0.001988

Line 10 - Subtract Line 9 from 100%     S/B 80.12%, but Turbo Tax fills in 0.8012%

Line 11 - Multiply Line 2 by Line 10        Miraculously, this number is filled in correctly by TT (not because they                                                                              followed the instructions. If they use their numbers, Line 11 would be                                                                              $4.94, not the correct answer of $494)

Since I cannot use the downloaded version on my old computer, I cannot change Lines 9 & 10 to be correct. Turbo Tax MUST fix this problem with the decimal places.

[64dancer]

Line 2                                                                 616

Line 7                                                            19,875

Line 8                                                          100,000

Line 9 - Divide Line 7 by Line 8              S/B  0.1988, but Turbo Tax fills in 0.001988

Line 10 - Subtract Line 9 from 100%     S/B 80.12%, but Turbo Tax fills in 0.8012%

Line 11 - Multiply Line 2 by Line 10        Miraculously, this number is filled in correctly by TT (not because they                                                                              followed the instructions. If they use their numbers, Line 11 would be                                                                              $4.94, not the correct answer of $494)

Since I cannot use the downloaded version on my old computer, I cannot change Lines 9 & 10 to be correct. Turbo Tax MUST fix this problem with the decimal places.