How do I exclude my Olympic or Paralympic prize money?
If the income is linked to Schedule C, TurboTax automatically treats these amounts as nontaxable and the amount in box 3 of Form 1099-MISC is included on line 1 of the linked Schedule C, and then subtracted by including it on line 48 of Schedule C along with any other expenses for line 48. TurboTax will enter the nontaxable amount and a description of USOC prize money.
Although these amounts are reported in box 3 of Form 1099-MISC these amounts are nontaxable, unless your adjusted gross income, including the amount of your medals and prize money, is more than $1,000,000 ($500,000 if Married Filing Separately). TurboTax automatically treats these amounts as nontaxable and the amount in box 3 on 1099-MISC is included on line 8m of Form 1040 Schedule 1, and then subtracted by including it on line 24c of Form 1040 Schedule 1 along with any other write-in adjustments for line 24.
If your adjusted gross income, including the amount of your medals and prize money, exceeds $1,000,000 ($500,000 if Married Filing Separately,) then you must change the amount entered by the program by entering a zero (0) on Form 1040 Worksheet, Other Adjustments to Income Smart Worksheet, line H, Olympic and Paralympic prize money.
If the income is linked to Schedule C, TurboTax automatically treats these amounts as nontaxable and the amount in box 3 of Form 1099-MISC is included on line 1 of the linked Schedule C, and then subtracted by including it on line 48 of Schedule C along with any other expenses for line 48. TurboTax will enter the nontaxable amount and a description of USOC prize money.
