Question

TurboTax is asking me questions about my "business" because I received a 1099-misc from a crypto lending platform. How do I proceed?

Forum|Forum|3 years ago
September 19, 2022
1 reply
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I earned some returns on crypto lending platforms and received 1099-misc from these companies.
Now Turbo tax is asking me what my business does and questions like "Tell us about how long you've worked in" this business even though this isn't a business or money I earned for work I did. How do I proceed?

Not A Product Question

Employee

If this is a 1099-misc box 3 situation then you are in the WRONG place ... delete the unneeded Sch C and enter it this way instead :

Down the left side of the screen, click Federal.
In the center of the screen, click Income & expenses.
On the screen Your income and expenses, scroll all the way down to the last section, Less Common Income.
Click the Start or Update button for the last topic, Miscellaneous Income, 1099-A, 1099-C.
On the next screen, Let's Work on Any Miscellaneous Income, scroll down and click the Start or Update button for the last topic, Other reportable income.
The next screen asks, Did you receive any other taxable income. Click Yes.
On the next screen, Other Taxable Income, enter a description and the amount. Click Continue.
On the next screen click Done.

The income will be reported on Schedule 1 line 8 with the description that you entered.

Y

yoshlAuthor

I go to "Other Taxable Income" like you suggested and it says "do not enter income reported on Form 1099-Misc"
The amounts are in Box 3 like you say but they are reported on Form 1099-Misc.

I also read that the IRS already knows how much they expect to see reported on 1099-Misc so if that amount doesn't match they will flag it and audit. Are you sure this is the right way to do this?