Solution to file form 1099-MISC with other income payment received as beneficiary of a decease relative

[Jack122]

The current software has a list of many reasons for filing form 1099-Misc. However, it does not list the payment received as the beneficiary of a deceased relative. The software actually directed us to list this payment as the business income. I know this is definitely not a business income. Currently, we can go to "forms" on the upper right corner to report this on Schedule 1 and indicate this payment as "other income". 

The better way is TurboTax adds one more reason for listing this income as the beneficiary of a deceased relative. At the end, this will still be listed as other income from box 3 of 1099-Misc on Schedule 1, Additional Income and Adjustments to Income, Part 1. Additional Income.

I'm sure many people including me would like to see the proposed change.

[JamesG1 · Accepted solution]

Follow the steps below to report other income reported on an IRS Form 1099-MISC.

• Select Federal from the left side menu.
• Click on Wages & Income.
• Scroll down to Other Common Income.  Click Show more.
• Click Start / Revisit to the right of 1099-MISC.
• Enter a description under Describe the reason.
• Select 'None of these apply' at the screen Does one of these uncommon situations apply?
• Select 'No' at the screen Did the income involve work.
• Select 'No' at the screen Did the income involve an intent to earn money?

The entry will be reported:

• on line 8z of Schedule 1 of the Federal 1040 tax return, and 
• on line 8 of the Federal 1040 tax return.

View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.

@Jack122 

[Jack122]

Thank you very much for your prompt reply. However, this is not what I have encountered when I opened form1099-Misc and filled in this payment received as other income. The payment received as the beneficiary of a deceased relative was in fact not in the reason list. After answering all the questions like "none of these apply" or "did not involve work", the software directed me to report this other income as business income. That's why I eventually went to "forms" to look for 1099-Misc and report this as other income as shown on line 8z of Schedule 1. The case was closed, but I'm sure there is a better way to get this done nicely.  

It would be wonderful if TurboTax can add this payment as the beneficiary of a deceased relative as one of the reasons so that this will be then reported as other income on line 8z of Schedule 1. I hope my post will help those who happen to have other income in 1099-Misc.

[DaveF1006]

There is another way that I have suggested to be tried and that is to report it as other income.

1. Federal Taxes -> Wages & Income>Less Common Income>Miscellaneous Income> Other reportable income.
2. When it asks, "Any other reportable income?" say yes and then type in 1099 MISC and the amount to report it on your tax return.
3. The amount will now appear on Line 8Z in Schedule 1.