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February 25, 2023
Question

What does "a link to schedule c should not be linked when the MWP qualifying as difficulty of care payments exclusion box has been checked" mean?

  • February 25, 2023
  • 9 replies
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9 replies

DawnC
Employee
February 25, 2023

As a workaround, until we can get the error removed, try

 

  1. Deleting the 1099-MISC with amounts in Box 3 and
  2. Enter the form as a 1099-NEC with the amount in Box 1

 

The results will be the same on Schedule C.   And the 1099-NEC will link to Schedule C without an error.

 

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February 25, 2023

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.

February 26, 2023

Even though I received 1099-msc form not 1099-nec? Thanks

DawnC
Employee
February 26, 2023

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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February 26, 2023

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?

February 26, 2023

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.

February 26, 2023

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.

 

@donnah-e 

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February 26, 2023

TurboTax is attempting to use schedule C. I just received a 1099-MISC with income listed in box 3 "other income".

February 26, 2023

its a major glitch

 

I am getting this too as of today 

 

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

February 27, 2023

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??

 

February 27, 2023

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.

February 27, 2023

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. 

Fix this TurboTax.

DawnC
Employee
February 28, 2023

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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March 1, 2023

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.

 

March 1, 2023

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!

March 1, 2023

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?

AliciaP1
March 1, 2023

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:

  1. Open or continue your return in TurboTax
  2. 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
  3. 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
  4. Answer the questions on the following screens until you arrive at Let's enter the income for your work
  5. Scroll down to the Income section and click Add income for this work
  6. Choose Other self-employed income and Continue

In TurboTax Home & Business:

  1. Select Business at the top of the screen.  Continue
  2. Select I'll choose what I work on
  3. Click Start / Update to the right of Business Income and Expenses
  4. Click Start / Update to the right of Business Income

To enter personal income:

In TurboTax Online or CD/Download:

  1. Open or continue your return
  2. Select the magnifying glass and search for 1099-misc. Select the Jump-to link
  3. 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
  4. 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
  5. 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
  6. Continue and answer I got it in 2022 on the How often did you get income for bonus? screen
  7. Continue and answer No on the Did the bonus involve an intent to earn money? screen and Continue
  8. If you have another 1099-MISC you can enter it or answer No and Continue
  9. Proceed entering/reviewing your return

@TorinoJuv 

@DanTheMan 

 

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March 1, 2023

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).

Link here:

https://ttlc.intuit.com/turbotax-support/en-us/help-article/schedule-c/getting-error-1099-misc/L5vRaSDY8_US_en_US