Solved

I received a 1099-MISC for the amount I won in a contest "Box 1: Rents," but it wasn't rental income. Which option am I supposed to check for the rental income source?

Forum|Forum|3 years ago
April 10, 2023
1 reply
0 views

To move on to the next part of the tax return, I have to mark it as either: rental income of real estate, income for business from rental of personal property, farm rental income, or nonbusiness income from the rental of personal property or equipment. Absolutely none of these apply to the situation. I entered a random drawing and won some makeup and clothes. What do I do?

TurboTax Deluxe Online

Best answer by MinhT1

It appears that there is an error on your form 1099-MISC. The amount should have been reported in box 3 - Other income instead of box 1. You can contact the issuer of the form 1099-MISC and request a corrected form. If you do not get a corrected form, I suggest that you report the amount in box 3.

As you receive a form 1099-MISC for a drawing win, then you are not considered as self-employed and do not need to file a Schedule C.

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2022, not in previous years and not in 2023, you will then have the screen where you can say that it did not involve an intent to earn money.

M

MinhT1Answer

It appears that there is an error on your form 1099-MISC. The amount should have been reported in box 3 - Other income instead of box 1. You can contact the issuer of the form 1099-MISC and request a corrected form. If you do not get a corrected form, I suggest that you report the amount in box 3.

As you receive a form 1099-MISC for a drawing win, then you are not considered as self-employed and do not need to file a Schedule C.

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money?. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

In TurboTax, there is a work-around. Although you may receive this income every year, say that you only receive the 1099-MISC only in 2022, not in previous years and not in 2023, you will then have the screen where you can say that it did not involve an intent to earn money.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"