TurboTax misbehave for 1099-MISC from my broker

[sunny_seattle]

I get 1099-MISC file from my broker for my investment gain.

But TurboTax read it and somehow think that's a self-employee business and start filing Schedule-C for me. And then it asked for many infos like Principal business code, business address etc... Is there anyway for me to let TurboTax stop doing this?

[rjs]

TurboTax is not misbehaving. Your broker might be misbehaving, or you might be misunderstanding the 1099 that you got from the broker). Exactly what kind of "investment gain" did you have? Capital gains from the sale of stock or other investments is supposed to be reported on Form 1099-B, not 1099-MISC. Dividends an interest are reported on Form 1099-DIV or 1099-INT respectively. Did you have a gain from some unusual type of investment? Which box of the 1099-MISC is the investment gain shown in?

[sunny_seattle]

Thanks for the respond, I have a structured note from Morgan Stanley, so in the consolidated Tax statement I received from them, it has a 1099-MISC in it, and the gain comes in box 3 "OTHER INCOME".

Yeah, its not a regular stock selling or dividends, but it should be classified as a regular investment income, and definitely not a self-employed business... Is there anything I can do with TurboTax in this situation?

[rjs]

Here's how to enter a 1099-MISC with income in box 3 in TurboTax so that it is reported as "other income" instead of as business income. It will be reported on Schedule 1 line 8z with the description "Other Income from box 3 of 1099-Misc."

• In the Search box type "1099-misc" (without the quotes), then click the link that says "Jump to 1099-misc."
• The first screen asks "Did you get a 1099-MISC?" Click Yes.
• On the next screen enter the information from the 1099-MISC form, then click Continue.

TurboTax will now ask a series of questions about the 1099-MISC income. Answer as follows, even if some of the answers aren't true.

• "Describe the reason for this 1099-MISC." - It doesn't matter what you enter. Enter a short description such as "Note income." Click Continue. You will see this description used in some of the subsequent questions, but it will not appear on your tax return.
• "Does one of these uncommon situations apply?" - Select the last choice, "None of these apply," and click Continue.
• "Did the Note income involve work that's like your main job?" - Select No and click Continue.
• "How often did you get income for Note income?" - "I got it in 2021" will already be checked. Don't check any of the other boxes. Just click Continue.
• "Did the Note income involve an intent to earn money?" - Select No and click Continue.