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Staking rewards 1099-MISC keeps getting classified as self employed income instead of 'other income'. How do I fix this?

From what I've seen, the 1099-MISC from staking rewards or interest should NOT go toward Schedule C. Especially since this wasn't for a line or work or job.
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3 Replies
VFRYZELKA
Returning Member

Staking rewards 1099-MISC keeps getting classified as self employed income instead of 'other income'. How do I fix this?

where do i enter the 1099 misc box 3 other income  which is foster care  non taxable income

DawnC
Employee Tax Expert

Staking rewards 1099-MISC keeps getting classified as self employed income instead of 'other income'. How do I fix this?

It should not go to Schedule C - To get your 1099-MISC, box 3 amount to go to Other Income instead of Schedule C, do the following:     Delete that 1099-Misc and the Schedule C that was started, instructions are below.  Then re-enter it, making sure to answer the follow-up questions as follows:

 

  1. After you enter the reason for the 1099-Misc, mark None of the above on the next screen (uncommon situations).
  2. Answer Did the refund involve work that's like your main job?  NO
  3. Answer How often did you get income for refund?  You got it in 2025 only
  4. Answer Did the refund involve an intent to earn money?  NO

 

This will report the box 3 amount as Other Income on Line 8 of Form 1040 without generating a schedule C.   

 

How to delete forms in TurboTax Online 
 

How to delete forms in TurboTax Desktop

 

 

Where do I enter a 1099-MISC?

@VFRYZELKA  Use the link above to enter your 1099-Misc.  and then (if the income is non-taxable) enter a negative entry for the same amount in the Miscellaneous - Other Reportable Income area.   Search for that exact term, answer Yes when asked if you have other taxable income?.  Then enter a negative amount equal to your 1099 and enter a description.    

 

other reported income.png

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Staking rewards 1099-MISC keeps getting classified as self employed income instead of 'other income'. How do I fix this?

Thank you.  That was it!

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