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Broker sent 1099-MISC for trade adjustment credit. What now?

Forum|Forum|3 years ago
March 30, 2023
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My broker sent me a 1099-MISC towards a trade adjustment credit of a few hundred dollars, which per their accounting guidelines was categorized as “misc credits” and not a gain or a loss.

Can I just fold it into the Schedule C of my small business, or should I report it on a separate Schedule C?

If the latter, then I'm essentially setting up a 'new business' to report this small income. I will select the following; hope these are correct.

- I have no employees

- business code is 523900 "other financial investment activities"

- I did not actively participate in the operation of this business

TurboTax Home & Biz Windows

Best answer by JamesG1

Rather than report the income in a self-employment activity, report the IRS form 1099-MISC as other other. Follow these steps:

Select Federal from the left side menu.
Click on Wages & Income.
Scroll down to Other Common Income. Click Show more.
Click Start / Revisit to the right of 1099-MISC.
Enter a description under Describe the reason.
Select 'None of these apply' at the screen Does one of these uncommon situations apply?
Select 'No' at the screen Did the income involve work.
Select 'No' at the screen Did the income involve an intent to earn money?

The entry will be reported:

on line 8z of Schedule 1 of the Federal 1040 tax return, and
on line 8 of the Federal 1040 tax return.

View the entries at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets.

@123champ

J

JamesG1Answer

Rather than report the income in a self-employment activity, report the IRS form 1099-MISC as other other. Follow these steps:

Select Federal from the left side menu.
Click on Wages & Income.
Scroll down to Other Common Income. Click Show more.
Click Start / Revisit to the right of 1099-MISC.
Enter a description under Describe the reason.
Select 'None of these apply' at the screen Does one of these uncommon situations apply?
Select 'No' at the screen Did the income involve work.
Select 'No' at the screen Did the income involve an intent to earn money?