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NON TAXABLE 1099 misc

Sharob

I need correct steps for adding NON TAXABLE 1099 misc. How can I enter this negative adjustment in FreeTaxUSA? I don’t see a specific option for “Other Adjustments to Income” or a way to enter a custom adjustment with a description.

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pandaexpressfan_1

How do you know it's non taxable? that might affect your answer.

JanaA

Hello Sharob! The correct way to handle a non-taxable 1099-MISC depends on the reason the income is not taxable, so we want to make sure we point you in the right direction.

For example, if the income is from a scholarship or grant used for qualified education expenses, it gets handled differently than, say, a down payment assistance grant that reduces your cost basis, or a payment that qualifies for a specific exclusion. Each situation has its own entry path in the software, and entering a generic negative adjustment may not be the right approach for your situation.

Could you let us know what type of income this was and why you believe it is not taxable? Once we have that information, we can give you steps to enter it correctly.

Sharob

Hello. The 1099 misc is from the Flint water crisis settlement.

zeezee

Test

Sharob

https://community.freetaxusa.com/discussion/comment/8147#Comment_8147

Hello. The 1099 misc is from the Flint water crisis settlement.

Sharob

Jana's

MatthewD

Hi Sharob,

Report the 1099-MISC using the 1099-MISC/1099-NEC page under the Income menu. Report it as Other Income.

Then add a contra income entry on the Other Income page using the Miscellaneous Income section. Enter a description like "nontaxable Flint water crisis settlement" and enter a negative amount (example, -1,000).

Contact Customer Support while signed into your account if you need help entering the 1099-MISC and the contra income entry.