To enter a form 1099-MISC, you need to be in the Wages and Income Section, then choose Other Common Income, then Income from Form 1099-MISC.
No. You don't want to indicate that this is self-employment; it isn't. You got money (from the union?) to picket, protest or otherwise go on strike. After entering a description (strike pay), TurboTax asks if the work you did for this money was like your main job, answer No, otherwise, it is self-employment. The strike pay replaced some of the lost income from your regular job, but it was not for doing work that was like your main job.
Then it will ask about how often you get the money - answer 2021 only. If you expect this pay regularly or receive it repeatedly, it is probably self-employment. And on the intent to earn money question, answer No again. If the payment was for something you did trying to earn income, that is self-employment. But this was paid to you to NOT work.
If you enter it like that, the income will show up on Line 8 of Form 1040 and will not be subject to self-employment tax. If you paid into a strike fund in addition to paying union dues, the portion of the 1099-Misc payment that represents a return of your strike funds is not taxable to you.
No. Strike pay is not considered self-employment income and unreimbursed business expenses for non-self-employed persons have been eliminated for tax years 2018 - 2025.
Did you get a form for it like a W2 or a 1099Misc or what?
it's complicated. it may or may not be taxable. see this thread for the various possible situations. I would start with the second scenario
Yes i have a form. Just don't know where that info goes
To enter a form 1099-MISC, you need to be in the Wages and Income Section, then choose Other Common Income, then Income from Form 1099-MISC.
I have tried several times to enter the 1099-MISC information. When it gets to the section where my Federal tax is reviewed, I started getting messages to fill in blanks on a form for self-employment. These do not apply to strike fund check and it should not be taxed at self-employment rate. How do I enter the information correctly? I am supposed to check No, it didn't involve intent to earn money?
Please clarify if you indicated this income was related to your main job (assuming the strike pay was for your main job). This option would normally prevent the self-employment tax calculation.
Do I mark yes or no that it involved intent to earn money? I don't really understand what that means?
No. You don't want to indicate that this is self-employment; it isn't. You got money (from the union?) to picket, protest or otherwise go on strike. After entering a description (strike pay), TurboTax asks if the work you did for this money was like your main job, answer No, otherwise, it is self-employment. The strike pay replaced some of the lost income from your regular job, but it was not for doing work that was like your main job.
Then it will ask about how often you get the money - answer 2021 only. If you expect this pay regularly or receive it repeatedly, it is probably self-employment. And on the intent to earn money question, answer No again. If the payment was for something you did trying to earn income, that is self-employment. But this was paid to you to NOT work.
If you enter it like that, the income will show up on Line 8 of Form 1040 and will not be subject to self-employment tax. If you paid into a strike fund in addition to paying union dues, the portion of the 1099-Misc payment that represents a return of your strike funds is not taxable to you.
Do I select Other Common Income to enter the info? I tried to enter it in Lee Common income and it won't let me delete that entry.
If you received a 1099-MISC for your strike pay, please follow the instructions below to enter your information:
You stated TurboTax won't let you delete the entry in Less Common income. When you use the trash can icon next to your entry, what error message are you getting?
Does this information also apply to strike pay on a 1099-NEC?
Strike pay is taxable, but is not subject to self-employment taxes. To post a 1099-NEC.
Click This is not money earned as an employee or self-employed individual,
I am helping my son with his taxes and I was looking at the thread you had on 1099-misc for strike pay. Where do you deduct the amount that he paid the union towards a strike fund? Is he allowed to just deduct it from the 1099? That doesn't seem right.
The Tax Cuts and Jobs Act eliminated the Unreimbursed Business Expense deduction for tax years 2018-2025, so this amount is not deductible for your son in 2021.
No. Strike pay is not considered self-employment income and unreimbursed business expenses for non-self-employed persons have been eliminated for tax years 2018 - 2025.
My union sent me a form 1099 - NEC.
It won't let me explain what it is pay for. I think they should have sent me a form 1099-MISC.
Now it wants to know what deductions I can claim, whether I paid employees, and seems to think that I sent out 1099-NEC forms to employees. I didn't keep track of fuel or I'd put that.
Not sure what to do at this point.
Go back to the Form 1099-NEC that you entered and delete (trashcan) the entry. Then follow the steps below to enter a Form 1099-NEC that is not for self-employment:
Open your return and go to Federal >> Wages & Income >> Other Common Income >> Income from Form 1099-NEC. Click Start/Update.
Or go to Tax Tools >> Tools >> Topic Search. Enter 1099-nec then click Go.
These entries will report the income on Schedule 1 Line 8z Other Income. The total from Schedule 1 Line 10 flows to Form 1040 Line 8 as ordinary income.