GOT A SETTLEMENT W2/1099 MISC/1099-INT ALL 3 TOGETHER QUESTION. Telling me to upgrade

The 1099-MISC form is considered a complex form and is not supported by the TurboTax Free Edition. 

Situations covered in the TurboTax Free Edition: (assuming no added tax complexity):

• W-2 income
• Limited interest and dividend income reported on a 1099-INT or 1099-DIV
• IRS standard deduction
• Earned Income Tax Credit (EIC)
• Child tax credits
• Student loan interest deduction

Situations not covered in the TurboTax Free Edition:

• Itemized deductions
• Unemployment income reported on a 1099-G
• Business or 1099-NEC income
• Stock sales
• Rental property income
• Credits, deductions and income reported on other forms or schedules (for example, income related to crypto investments)

If your 1099-MISC form is for self-employment (wages), to enter, please see: How do I report income from self-employment?

If your 1099-MISC form is for one of the items below, to enter please see the entry instructions below:

• a one-time payment, like a prize,
• not self-employment income, 
• not wages or involve work that’s like your main job, and 
• money or goods or services received with no intent on making a profit,

To enter other reportable income, on a 1099-MISC form, so a Schedule C is not generated, follow these steps:

1. Sign into your TurboTax account.
2. Select Federal from the left side menu.
3. Type 1099-Misc in the search bar and click on Jump to 1099-misc.
4. On the Did you get a 1099-MISC? screen, select Yes. If you come to the 1099-MISC Summary screen, select +Add Another 1099-MISC located under the Total.
5. On the Let’s get the info from your 1099-MISC screen, enter the information on the form and Continue.
6. On the Describe the reason for this 1099-MISC screen, enter a description.
7. On the Does one of these uncommon situations apply? screen, if you select any option other than None of these apply, continue with the onscreen interview until complete. 
8. If you select None of these apply, continue with the onscreen interview and answer the additional questions about the income.
9. On the Did the XXX involve work that’s like your main job? screen, select No, it didn’t involve work like my main job. Please see the examples if you’re not sure if the work is like your main job. If it’s like your main job, this may be self-employment income. 
10. On the How often did you get income for XXX? screen, select I got it in 2022.  Note: If you have done this work in the past and plan on doing this in the future, this may be self-employment income. 
11. On the Did the XXX involve an intent to earn money? screen, select No, it didn’t involve an intent to earn many and Continue. Note: An intent to earn means obtain (money) in return for labor or services with the intent on making a profit.

If you're using TurboTax Online, to check your entry and preview your Form 1040 , click here.