Question

1099-MISC that is NOT from working

Forum|Forum|5 years ago
February 22, 2021
1 reply
0 views

For the last 4 years, my husband receives a Christmas bonus check from one of the unions he worked for. Since this is from the union's bonus fund and not husband's own retirement fund, the union reports it on a 1099 MISC. Every time I enter it, Turbotax keeps treating it like a side job, tries to force me to fill out a schedule C. There is no longer an option that allows me to select "No, it didn’t involve an intent to earn money” and so I am in a never ending circle. Because I am self employed and have a schedule C with a small income, we have in our joint return a 1099 MISC in my name, but TT keeps trying to treat this Christmas bonus as another business, is charging us self-employment tax, etc. What do I do??? I really need to file taxes and get our refund, and this is getting frustrating. Why is the "not an intent to earn money" option now gone?

P

PattiF

You can still enter the 1099-MISC as income that is not self-employment income.

Follow these steps in TurboTax Online:

In the Federal section, under Your income and expenses
Scroll to Other Common Income
Select Form 1099-MISC
Follow the Prompts and enter amount in Box 3, Continue
Christmas Bonus in Describe the reason for this 1099-MISC box
Do any of these uncommon situations apply? check last box
On next page, check No, it didn't involved work like my main job.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

R

rarussel

The solution did not work. It is still treating a retiree bonus as income from a personal business.

L

Lorac

The only way I could clear this error was to go into Forms and delete Schedule C. Since I had no other self-employment income, this was an easy fix. BUT, Turbo Tax has to do a better job with the logic around this coding. It is unacceptable that this can't be solved through Step by Step.

Deleting the Schedule C was a "genius" solution. Thank you so much!