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February 21, 2025
Question

1099-Misc

  • February 21, 2025
  • 1 reply
  • 0 views

My Daughter received a $1000 from the state as an award for being a Pre-School teacher and they issued a 1099-Misc. and Turbotax wants me to consider it as a business, but she does not have a business.  It was just an award.

    1 reply

    DawnC
    Employee
    February 21, 2025

    Delete both that 1099-misc and the Schedule C that was started using the instructions below.   Then re-enter the 1099-misc as follows.  

     

    How to delete forms in TurboTax Online

     

    How to delete forms in TurboTax Desktop

     

     

    To enter a 1099-MISC, that is for miscellaneous income, not for self-employment or rental income, follow the steps below.

     

    Under Other Common Income, select Start or Revisit next to Form 1099-MISC.   Enter your 1099-MISC info on the Let's get the info from your 1099-MISC screen and click Continue.  

     

    1. On the Describe the reason for this 1099-MISC screen, enter a description of the income (award).  
    2. Click Continue.
    3. Select None of these apply on the Does one of these uncommon situations apply? screen.
    4. Select No, it didn’t involve work like my main job on the Did the involve work that's like your main job? screen.
    5. Select I got it only in 2024 on the How often did you get income for? screen.
    6. Select No, it didn’t involve intent to earn money on the Did the work involve an intent to earn money? screen.
    7. Select No on the Do you have another 1099-MISC? screen.

     

    Answering differently to any of these questions will imply self-employment and generate Schedule C.  

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