I found a way to report airdrop income on a 1099-Misc without triggering Business Income. I think it gives the right result by not following TT's instructions. Took 3 steps: 1) Enter 1099-Misc income and state it's not a business, but TT still treats it as business, so - 2) Go to Business Income and delete the entry that TT made automatically. Then - 3) Go to Less common income > Miscellaneous Income > Other reportable income, and report the airdrop, even though TT says to NOT show income reported on a 1099-Misc. The result on the tax return - the Income is shown on Schedule 1, line 8z as "Other income from Box 3 of 1099-Misc". I think this is the correct reporting for this passive income. I pay ordinary income tax but not the 15% business tax. My question - I had to override TT's instruction to not report 1099-Misc income in the "less common" section. On Schedule 1 Line 8z the income is referred to as 1099-Misc income. Can anyone verify that the result is correct, or should I be concerned about red flags with the 1099-Misc description shown in Schedule 1?
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Your process is brilliant, and I could not have given better directions. Although a 1099-MISC is not specifically included in the Less Common Income drop down. It is not excluded. For an airdrop, you posted it perfectly. Well done!
Your process is brilliant, and I could not have given better directions. Although a 1099-MISC is not specifically included in the Less Common Income drop down. It is not excluded. For an airdrop, you posted it perfectly. Well done!
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