How to Enter Non-recurring Income on Form 1099-MISC
TurboTax may prompt for Child Investment Income Form 8815 after entering a dependent's Form 1099-MISC box 3 income. When the income is from non-recurring payments, such as a lawsuit settlement or research study, use these steps to correctly enter those payments
To ensure correct handling of non-recurring payments received on Form 1099-MISC, enter under:
- Federal Tax tab (Personal tab in Home & Business product).
- Select Explore On My Own.
- Scroll down to Other Common Income, and select Income From Form 1099-MISC, select Start/Update.
- If he form was already entered, select Edit next to the form, Or...
On the Enter Form 1099-MISC page, confirm all box entries are blank or show zero (0), except for box 3. State information in boxes 16-18 should match what is on the form. Click Continue.
On the Source of Other Income page, select the first option, Consulting, freelancing, contract work, side jobs, your business. Click Continue.
On the Select the Reason You Got This 1099-MISC page, select None of the Above – show me more options.
New options are shown. Under Other reasons for a 1099-MISC payment, select one of the first two options:
- This was money from a lawsuit settlement. Under the question "Did you perform a service to earn the money [businessname] paid to you?", select Yes.
- I was in a research study and this was my payment. Two lines show asking "Did you perform a service to earn the money [businessname] paid to you?",
- select Yes next to the first question, and
- select No next to the second question.
The second question is supposed to read “Do you intend to do this same line of work in 2012?” A Yes answer to the second question means you are self-employed, rather than receiving a non-recurring payment.
Click Continue and confirm how the income is being handled.