why is turbotax assuming i have a business just because i got a 1099-MISC and is giving me a credit i should not have

[wes10101]

I received a 1099-MISC from Chase Bank for Credit Card Referral Bonuses and TurboTax grilled me on my "business" that I do not have and is giving me a $111 Business Credit Reduction that I should not have.

[MindyB · Accepted solution]

It is creating a business because of the way the information was reported when entering the 1099-MISC.  Certain answers trigger the business being created, specifically receiving the same type of income over a period of years.  I suggest you delete the 1099-MISC you have entered, and anything that was created in the self-employment section and start fresh.

Here is how to report the 1099-MISC in TurboTax Online:

• Navigate to Federal > Wages & Income > Miscellaneous Income> Form 1099-MISC
• Enter the 1099-MISC as printed, Continue
• Describe the reason for this 1099-MISC: "Credit Card Rewards" or description of your choice.
• Select None of these uncommon situations apply, then continue
• Select No, it didn’t involve work that's like your main job and continue
• The next screen asks how often you get income from Credit Card Rewards.  Select only the year of this specific 1099-MISC, 2025.
• When asked if the Credit Card Rewards involved an intent to earn money, choose No. 

Check your entries to be sure the return is populating as expected.  Go to Tax Tools on the left of your screen, choose Tools, then View Tax Summary. On the left of the screen, select Preview my 1040. Scroll to Schedule 1, and on line 8z you should see Other Income from box 3 of 1099-Misc.

[baldietax]

there's a question whether it was an "intent to earn income", which triggers Schedule C - say No to that (it's passive income).