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skhe2116
Returning Member

Short term rental cancellation fees reported on 1099-MISC OMB box 3 other income

My management company reported Short term rental cancellation fees reported on 1099-MISC OMB box 3 other income.  When entering this form into Turbo Tax Rental Properties and Royalties it shows as Self Employment earned income and is subject to FICA and Medicare Taxes.  I think it is supposed to be unearned income but don't know how to designate it as such.

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1 Reply
AmyC
Employee Tax Expert

Short term rental cancellation fees reported on 1099-MISC OMB box 3 other income

Contact the issuer and tell them rental income goes in box 1, this includes the rental cancellation fees you collected. They should issue a new 1099-MISC with the income in the correct box.

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