Skip to main content
March 1, 2023
Question

A link to schedule C should not be linked when the MWP qualifying as difficulty of care payments exclusion box has been checked. Can someone notify us via email when this is going to get fixed - been working on this for day untill i saw these thread

  • March 1, 2023
  • 2 replies
  • 0 views
No text available

    2 replies

    AliciaP1
    March 1, 2023

    You are not required to enter a 1099-MISC specifically into your tax return as long as all the income is reported correctly.  You can delete your 1099-MISC Form from your return and re-enter the income to continue filing your return and not have to wait.

     

    To enter your income to your business in TurboTax Online you can follow these steps:

    1. Within your return, click on Tax Tools in the black menu on the left side of the screen.
    2. Click on Tools.
    3. Click on Delete a Form
    4. Scroll down to your form and click Delete.
    5. Under Federal in the black menu bar click Wages & Income to get back into your tax returns.
    6. Search for self employed income (use this exact phrase, don't add a hyphen) and select the Jump to link at the top of the search results
    7. Answer Yes on the Did you have any self-employment income or expenses? screen
      • If you land on the Your 2022 self-employed work summary page, select Review next to the work you're adding income for
    8. Answer the questions on the following screens until you arrive at Let's enter the income for your work
    9. Scroll down to the Income section and click Add income for this work
    10. Choose Other self-employed income and Continue
    11. Proceed entering/reviewing your return.
    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    March 1, 2023

    to clarify my situation - this income was from COINBASE for staking crypto.  and they reported this to IRS on a 1099-MISC box 3.  so wouldn't I have to do the same to match?

    March 1, 2023

    If your staking income is a one off thing and not something that you're doing regularly then you can enter the income from the 1099-MISC into the miscellaneous income section as just miscellaneous income that wasn't earned with the goal of making money.  It will go on the 1040 in line 8z and not subject to self-employment tax.

     

    The IRS is attempting to match the amount from your 1099-MISC, not the specific form.  So as long as it is in the correct category then you are fine.

     

    If your staking income is something that you do regularly then it is subject to self-employment tax and you have a business.  That is when you will use the steps outlined by @AliciaP1 above.  If you have any expenses directly related to earning the staking income you will be able to deduct those as well.  The staking income in this case is subject to self-employment tax because you're doing it as a side gig to make money.  Again, the IRS is looking for the amount from the 1099-MISC on your return, not a linked form.

     

    Here is some more guidance on staking and crypto in general.

     

    @frankdesmond62 

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    March 4, 2023

    Looks like the last update fixed the issue