I received a 1099 MISC with "other income" on line 3. How do I handle this with Turbo Tax?

[Ashby]

Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.

Enter the 1099-MISC exactly as printed, and then Continue.

Enter the reason you got this money – be it scholarship, bonus, streaking butt naked across the 50 yard line of the super bowl, whatever. Then continue.

Select None of these apply, then Continue.

Select No, it didn’t involve work….. and Continue.

Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.

Select No, it didn’t involve an intent to earn money, then Continue.

Select NO, then Continue.

Click the DONE button, and that does it.

[peterburr]

The 1099 MISC was for a rental property.  It has an amount in box 1 for "rents" and another amount in box 3 for "other income."  It did involve work and it is ongoing from year to year.

[Ashby]

I see. Then you should enter the same 1099 separately. You enter once for rental income in Box 1. Then, you will enter your Box 3 income like the answer start above, but instead answering the questions so that you have an ongoing business/profit motive.

[peterburr]

Where do I go to enter the same 1099 MISC for the 2nd time?  

[Hal_Al]

Same place you entered the first one. But now, you'll see a 1099-Misc Summary. Click add another 1099-Misc.

[Hal_Al]

Why are you getting a 1099-Misc with entries in both box 1 and box 3? What did you do for the box 3 money?

[peterburr]

The 1099-Misc is for income from a rental property.  Box 1 is for "rent" and box 3 is labeled "other income" which is actually reimbursed expenses for utilities. Do I need to submit two 1099-Misc's in Turbo Tax even though I only  received one 1099-Misc;  one entry with the box 1 income but not the box 3 income, and a second entry with the box 3 income but not the box 1 income?

[Hal_Al]

Yes, you do it as you describe.

But, If your tenant is reimbursing you for utilities, you should be reporting that as rental income. Then you deduct what you paid the utility company as an expense, on Schedule E.  Unfortunately, the IRS will be expecting the income on line 21  of Schedule 1 (or schedule C if your worked for that $).

How does utility reimbursement "involve work"?

[peterburr]

Good point;  I understand.  However, when I attempted to add a 2nd 1099-misc entry with just the other income listed, I get a message saying "You can't report this income here.  You can't report other income on a rental property."  The message goes on to say "You can report this income on another form or schedule later in the interview" but I do not know where or what that form is or how to access it.

[Hal_Al]

After you finish the first 1099-misc (box 1) you will be asked if you got another 1099-misc. Answer No (you're still in the rental section at that point).  Click continue and finish the rental section.

Later, click on wages and income and scroll down to 1099-Misc and other common income; then to Income from form 1099-Misc. Click updtate. Then click Add another 1099-Misc

[peterburr]

It worked...thank you so much for your help!  Much appreciated!