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Unearned Income Form

Have a very tiny amount of unearned income that I get a 1099-MISC every year. Had some trouble getting TurboTax to put it in Schedule 1 Form as other income per the instructions that came with the 1099-MISC instead of Schedule C. Had to keep going back to delete the form and re-input the information. Sometimes it would put in multiple Schedule C with the same information. It was too confusing about the answers until I finally got it. But because I deleted the Schedule C forms, I had to re-input the Payer information which previously had been transferred from last year's tax file. Not sure if this is a software problem or an obtuse guidance question. This is the first year to have this problem. Any answers so I don't have the same issue next year?

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2 Replies
MinhT1
Employee Tax Expert

Unearned Income Form

If you receive a form 1099-MISC for some small unearned income, then you are not considered as self-employed and do not need to file a Schedule C.

 

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

 

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2021, not in previous years and not in 2022, you will then have the screen where you can say that it did not involve an intent to earn money.

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Unearned Income Form

Your answer/work around is what I actually did... kind of by trial and error. Not a clear way of being "guided" to this result by the software. It was a little frustrating at best. At least I know now that I did it right. Thanks

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