Severance pay filed on a 1099-misc form

[rlkoller]

Have received a 1099-misc for severance pay from TRU Financial Assistance Fund. Income is listed in Box 3 as "other income" and a W2 was not received for 2019. When entering the 1099-misc information in Turbo Tax Deluxe 2019, a Schedule C is being generated. There is no business, nor contracting done. This is very simply severance pay from a company that went out of business. Have not worked for this company (Toys R Us) in 2019, only severance pay was received from the above mentioned account. How can I correctly claim this income?

[SusanY1]

Delete the 1099-MISC and enter the amount from Box 3 in "Other reportable income".  There just give it a description that makes sense to you such as "Severance pay". 

Here is how to find that section:

1. Click on Wages & Income.
2. Click Show more beside Less Common Income.
3. Click on Miscellaneous Income 1099-A, 1099-C.
4. Click Start beside Other Reportable Income.

[NTX User]

For 2019, received W-2 wages & 1099-MISC box 3 severance pay from the same (former) employer.

Following step 4 of SusanY1 instructions, Other reportable income, on the screen where I enter a brief description and amount it clearly states "Do not enter income reported on Form 1099-MISC."

Questions:

1. Am I to disregard the directions and enter it here anyway? Otherwise, where do I enter it and explain?

2. If indeed ok to enter here, is this the only place I address this item?

Thank you in advance for your reply.

[DaveF1006]

No, go ahead and report the income like Susan suggests. The income will match what is on the 1099-MISC. This is the correct way that Turbo Tax suggests to report it.