This worked for me. I saw a previous workaround that involved going into the "Forms" and deleting the Misc 1099and adding income to the Other Income line. That made me very nervous. Thanks for this suggestion.
It depends - why did you get the 1099-MISC? @FIFICOLE Was it for self-employment income or something else? If it was for self-employment, you can enter it as a 1099-NEC.
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I'm experiencing the same issue. My 1099-MISC is the result of obtaining a sign-up bonus for transferring money into a new brokerage account. Does this work around apply to this situation as well?
Hello, the income is for Solar Electricity Production (electricity sold to the electric company). When will this error be corrected? I have spent almost an hour trying to figure out what I did wrong. (pretty annoying). Every other year there was no issue.
Is your income being reported as income in a Schedule C in your Federal 1040 income tax return? If so, the workaround outlined by @DawnC should allow you to bypass the issue and electronically file your tax return.
Where is TURBOTAX? anyone with potential schedule C and self employed income is going to get this error when logging back in after the updates they did the last few days
I'm receiving this same error after trying to adjust my previously filed tax return upon late receipt of a 1099-MISC. I do not feel comfortable with the 1099-NEC substitution since I received the 1099-MISC from my W2 employer for incentive bonus pay. When will TurbotTax fix this error??
Seems to be an error with Turbo Tax as no such box is checked. Probably either workaround should work but the best is probably to just report it as an NEC form.
I have a 1099-MISC for income earned as a consultant. I didn't get this error a couple weeks back when I ran Smart Check I have no idea where the "difficulty of payments exclusion box" is. The worksheet flagging this 'error' is saying to use Schedule C with "Consultant" in the box. Unlinking that on the worksheet really gets the wheels turning! But not I think correctly.
One expert is saying enter the info as a 1099-NEC. It may come out the same, but this isn't accurate. Another expert is saying never do that.
TurboTax is working to resolve the issue. If you would rather wait until it is fixed, you can sign up for notifications through this link. If the income is from self-employment, it all goes to line 1 of Schedule C (1099-MISC, 1099-NEC, and other/general business income).
If your income is not from self-employment (most 1099-MISCs are not), it should not be linked to any Schedule C, and therefore, you should not be getting this error. If your 1099-MISC is not from self-employment and you get this error, you need to delete the 1099-MISC and re-enter it make sure to specify the correct reason you received the form. Otherwise, it will go to Schedule C and you will pay self-employment tax on income that you should not be paying SE tax on.
Your income is self-employment, so it should be on line 1 of Schedule C. @DanTheMan
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I'm not sure what line or schedule this income from self-employment should go on. That's why I buy TurboTax. It should probably have come on a 1099-NEC like my other similar income, but it didn't. C'mon, TT.
I hope TT will fix the error and frustration it has created for a bunch of people soon. Like others, I am reporting amounts in Box 3 from two 1099-MISC forms I received. This is for the business I engage in and should properly be added to Schedule C. Very simple. As others have said, we shouldn’t have to fudge and change the 1099 MISC to NEC just to get TT to accept it. That would be inaccurate. The actual solution is for TT to fix this obvious problem to its program that many people have been frustrated by. ASAP!
I got the same error when I went to file. I got a 1099-MISC for New York State Payed Family Leave. It wants me to file it almost as if I have my own business, but obviously this is not a business. Should 1099-MISC be linked to schedule C and declared as self-employment income even though Im not self employed? Is there a way around this error message for this case?
No, if the income is not from self-employment do not report it as such. Also, you are not required to report self-employment income by a specific form. In both instances, you just need to be reporting your income in FULL on your return.
To enter your self-employment income:
In TurboTax Online:
Open or continue your return in TurboTax
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
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
Answer the questions on the following screens until you arrive at Let's enter the income for your work
Scroll down to the Income section and click Add income for this work
Choose Other self-employed income and Continue
In TurboTax Home & Business:
Select Business at the top of the screen. Continue
Select I'll choose what I work on
Click Start / Update to the right of Business Income and Expenses
Click Start / Update to the right of Business Income
To enter personal income:
In TurboTax Online or CD/Download:
Open or continue your return
Select the magnifying glass and search for 1099-misc. Select the Jump-to link
Answer Yes to Did you get a 1099-MISC?
If you already entered a 1099-MISC, you'll be on the 1099-MISC Summary screen, in which case you'll select Add Another 1099-MISC
Enter the info from your form into the corresponding boxes
If you need to enter boxes 4–6 or 8–17, check My form has other info in boxes 1–17 to expand the form
Continue answering the following questions until you get to the Did the bonus involve work that's like your main job? screen and answer No
Continue and answer I got it in 2022 on the How often did you get income for bonus? screen
Continue and answer No on the Did the bonus involve an intent to earn money? screen and Continue
If you have another 1099-MISC you can enter it or answer No and Continue
All due respect, I think everybody gets how to enter a Misc 1099 Form if it is related to self employment. The problem is for those that have correctly entered it as such, we are getting the error message relating to MWP which refers to the "Medicaid Waiver Payments" box in Box 3. The specific problem is TT is processing it as if we have clicked that box even though we haven't, which is leading to the error message. TT needs to fix the error, which they have indicated they will do in their next round of edits (according to the link previously provided by Dawn C).