Received a 1099-misc for ca waiting time penalties, how do i account for it?

[LeeM]

You would enter that Form 1099-MISC as OTHER INCOME using the directions in the FAQ below since it was not self-employment income:

You can report it as other income on Form 1040 line 21. Here's how to enter it in TurboTax.

• Click the Federal Taxes tab
• Click Wages & Income
• On the screen "Your 2016 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 Form 1040 line 21 with the description that you entered.

[bullitt]

But it adds to the Federal Tax owed when calculating. If it's not taxable, why does it add to amount owed?

[alezona101]

Hey @bullitt same problem how did you resolve this?

[sdaru]

Hi @alezona101  Any further info on this ? I am in same situation.