Question

My 1099-misc is NOT related to self employment income... it was a one time tax rebate from the state of MN from 2021

Forum|Forum|2 years ago
February 15, 2024
1 reply
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I know how to add this 1099 but I don't know how to get it to recognize it is not self employment income and make me upgrade to pay for turbotax. I otherwise only have a simple return with 1 W2

TurboTax Deluxe Online

DawnC

Even if your 1099-misc is not self-employment, you have to upgrade to Deluxe. The free edition does not include any 1099-misc forms. When you enter the 1099-misc, you can say that it did not involve your main job and that you only received the money in 2023 - that you were not trying to make money and it will go to Other Income. The rebate won't be taxable on your MN state return, but it will be taxed on your federal return. But only at ordinary income tax rates, not at self-employment rates.