Can I delete the Schedule C form and overide the 1040 by adding 1099 misc income to Misc Income and still efile?

I am doing my mothers return and she earns a modest amount from consulting. In the past her CPA did not file a Sch C but just added it to Form 1040, line 21, misc income. He also added in her health insurance costs to line form 1040 line 29 and filed a Sch SE form with the correct amounts.

Because my mom will only be doing a bit more consulting in 2011 and will then be fully retired, I do not want to now start filing a Sch C and trigger an audit. Therefore, I would like to do it the same way the prior CPA did it.

To make sure I made all of the right corrections, I first  entered everything the "correct" way, including a Schedule C, so that after I delete the Schedule C, I know exactly what forms to that I need to make override corrections on. (Turns out to be 1040, Sch SE and Sch M)

However at the very end, my errors indicate that Turbo tax cannot efile any overridden forms. Is this true? If so, is there a way for me to get around this?

    If the 1099-MISC form had the amount in box 7, then your mom's CPA likely did it wrong.

    You should just go ahead and do the Schedule C the "correct" way like you said and do not override entries.

    You are more likely to trigger an audit by using line 21 rather than using a Schedule C.

    • Hi Ron,
      I appreciate your advice, but my mother wants to keep doing it the same way. You may be right about line 21 triggering an audit, but she has been doing it this way for over 10 years and so I am inclined to think that changing to a schedule C at this point would more likely trigger an audit. As I mentioned she won't be doing any more consulting after 2011 and so that also convinces me to not do the sch C.

      Can you or anyone else, answer my original question? Is it possible to make overides and still use efile? Or is there any other way to accomplish my goal and still use efile?

    Yes, that is basically correct: you can't get there from here.
    You can do it the way you want, the IRS will be OK because the outcome is the same, as doing it the "right way". You just have to mail it in. I agree with your way of doing, just to be consistent. But it's silly to expect an off the shelf software program to accommodate your every whim. The fact that you can override & print, is a more than adequate accommodation.

    Actually, I think there is a way to e-file (but I haven't actually tried it). Probably more than 1 way, but this was comes closest to doing it the way you want. You force TT to put the income on line 21.  After entering your 1099-Misc,  at the 1099-MISC screen, on the follow up screens you:
    -Call it money from a side job
    - Lie, and Answer NO to 2008-09, NO to 2011-12, and check NO to regular line of work (lying to TT to get it to do what you want, isn't the same as lying to the IRS)

    After completing that section,  type- schedule SE -in the search box and it will let you complete Sch SE
      I have to concur with Ron.  If this is recurring consulting income, it is self-employment income and subject to self-employment tax.  That would put it on Schedule C and generate a Schedule SE for self-employment tax.

      "I do not want to now start filing a Sch C and trigger an audit"

      But that would not be correct.  I don't think you will find many posters here who will advise you on how to file an incorrect return.
        And it is true that TT cannot efile a return that contains an overrride.  Note that the override also voids the TT Accuracy Guarantee.
        • Hmmmm....just want to say that while it is great that you all are willing to give advice, I believe that they way I am going to file my mom's tax return is okay. It may not be completely technically correct, but I think that many small practioners take a more practical view and take shortcuts and it doesn't hurt anyone....the taxes are the same. So to take the attitude that you won't help someone file a return IF it is possible with the software, is sillly to me. Since I got my answer that the software won't allow me to, I suppose this is a moot point.
        • Just want to add that the best answer "chosen by the community" didn't answer my question, although it was helpful.
        My answer above was edited.
        • Hal, I will try it! and get back to you if it works. In any case, I appreciate you spending time to figure out a solution.
        • Hal,
          Wow, I think it worked. I still had to make overrides to add in health insurance expense and to adjust Sch SE (in 2010 you can now deduct health insurance from SE income before it is taxed) and schedule M. But inspite of the overrides it let me go all the way down the path to efiling without telling me I had an error. I guess I won't be totally convinced until i actually efile it. Thanks again!
          I wish I could indicate that you solved my post, but it no longer gives me that option.
        Even if you got it to go, the CPA was doing it incorrectly for all years he was doing it.   If you had done it correctly, it would not have caused an audit just by itself.  It just would have been done in a proper way.
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