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Taxpayer received 1099 Misc for non-earned income. How do I keep SE taxes from being applied? Thanks to anyone who can help.

 
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Taxpayer received 1099 Misc for non-earned income. How do I keep SE taxes from being applied? Thanks to anyone who can help.

What exactly was 1099-MISC for?

Taxpayer received 1099 Misc for non-earned income. How do I keep SE taxes from being applied? Thanks to anyone who can help.

You appear to be a tax preparer. If so, be advised that TT is not licensed for your use.

Taxpayer received 1099 Misc for non-earned income. How do I keep SE taxes from being applied? Thanks to anyone who can help.

You can report it as other income on Form 1040 line 21. But if the amount in box 7 is greater than $400 the IRS may disagree with your non SE tax income choice ... be prepared to defend your choice. Here's how to enter it in TurboTax.


• Click the Federal Taxes tab.
• Click Wages & Income.
• Click "I'll choose what I work on."
• On the screen "Your 2014 Income Summary," scroll all the way down to the last section, "Less Common Income."
• Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."
• On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."
• The next screen asks, "Did you receive any other taxable income." Click Yes.
• On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.
• On the next screen click Done.
The income will be reported on Form 1040 line 21 with the description that you entered.

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