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April 11, 2022
Question

TT Programming Error. I have bond dividend reporting on a 1099-MISC, but TT handles it as Self-Employment creating a Schedule C. How can I stop this?

  • April 11, 2022
  • 1 reply
  • 0 views
I found this error last year and jumped through all manner of hoops with TT before I found someone who could fix it so I could file an Amended Return.  Now I'm fighting this again as it is forcing me to complete a Schedule C.

1 reply

ColeenD3
April 11, 2022

To enter a 1099-MISC for miscellaneous income in TurboTax:

  1. Open or continue your return
  2. Search for 1099-misc and select the Jump-to link

 

  1. Answer Yes to Did you get a 1099-MISC?
    • If you already entered a 1099-MISC, you'll be on the 1099-MISC Summary screen, in which case you'll select Add Another 1099-MISC
    • If you need to edit or delete a previously entered 1099-MISC, select the appropriate button

To exclude it as business income, say NO to the questions regarding the intent to earn money and that it involved work like your main job.

bglenn55Author
April 11, 2022

I was on with Help Support for over 2 hours with Tech Support pulled in.  We performed various workarounds, loading and deleting forms through various venues. With a Schedule C my Federal Refund was calculating as $1,779.  During a subsequent Federal Review process, we deleted the form in a prompting session and my refund jumped to $2,149.  The form still appeared in the Wage & Income section, so we thought we had resolved it until the Final Review once again prompted for Schedule C information.  Once again, we deleted the form from the Wage & Income session, instead using the "jump" process as is suggested above.  We re-created the form and answered all the Business and "income intent" questions No.  Then a question appeared asking if this income was re-occurring - check prior years when this income was received. 
My bond income is re-occurring, thus I checked all the years listed, but then it registered with me - last year when I was struggling with this same issue without success, the 7th Tech I spoke told me NOT to check the prior years!  The tech said because the program had filed these 1099-MISC in error as Business-related in prior years, by checking the income was reoccurring, this year's program was defaulting this as Business income as well.   GRRRR!!!!
So by going through "jump," answering "No" to all "income earing intent questions" AND INDICATING THE INCOME WAS NOT REOCCURRING,  I finally got  this year's return to correctly accept the 1099-MISC as ordinary Other Income rather than Self-Employment. My refund calcauted as $1,949.
This definitely a programming bug in the software!  I cannot be the only person in the US that is having this issue.  "Normal people"who like me trusted the software and the related filing step assurances from TT technical staff are unwittingly being overtaxed - unless they know how to trick the software.  Unfortunately, since I did not stumble on this glitch until last year, the Turbo Tax software captured this as Self-Employment Income for several years. requiring me to pay Social Security on Bond Dividends.   Now its too late for me to file amended returns to recoup these overpayments, so I'm out about $175/filing.   So is TT ready to pony up to their "guarenateed best refund" and pay me the estimated $1,050 I'm out?
Once again, I begged the Help Support people to escalate this issue and make program modications.  I'm not holding my breath with hopes something might be done, or that TT will make good on their guarantee.  So buyer beware!    ;-(