Hello,
I'm stuck at this step while continuing to finish my federal taxes.
Is this because I reported some amount in the 1099-MISC section? I received points from my credit card for referring a friend (which is not the usual sign-on bonus). Though I didn't receive any 1099-MISC from my bank as the amount is less $600, I did however report it in the 1099-MISC section to avoid any issues.
I'm not self-employed and I do not own a business. What is the best option I have? Do I need to delete the 1099-MISC section?
@KoushikD , I am missing something here.
Generally points are not cash or illiquid and mostly not taxable. My position on these is that these r=are not transferrable but can be used to reduce your personal expense ( when purchasing something ). Thus not taxable income.
The bank , giving you a credit in your account for referring a client, is transferrable amount -- it is cash and thus taxable income, whether a 1099- INT is issued or not . Credit Unions often call this dividend. IRS calls all these as interest. So report as interest -- ordinary income.
But yea if you get a 1099-MISC, you have to recognize the income ( because this is an expense on the entity side ).
Does this make sense -- or am I in the left field ?