How to enter 1099-MISC with incorrect Box 1 RENTS entry in TurboTax/Intuit

Hey there everyone! I'm in a bit of a jam with my taxes this year. I just got a 1099-MISC from my previous employer and they put the amount in Box 1 as RENTS. The thing is, this isn't rent money at all! It's actually money they gave me after working there for a year to help with my student loans. Now I'm trying to enter this in TurboTax and it keeps stopping me because it wants to know where the rent money came from. But there IS no rent income - it's just student loan assistance that was incorrectly categorized. Does anyone know if the employer should have checked Box 3 for "Other Income" instead? I'm stuck and can't proceed with filing until I figure this out. Has anyone dealt with something similar with TurboTax/Intuit? Thanks so much for any help!

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18 comments

Javier Mendoza

•8M

This is actually a common mistake employers make with 1099-MISC forms. You're absolutely right that student loan assistance payments should typically be reported in Box 3 (Other Income), not Box 1 (Rents). When you're entering this in TurboTax, you have a couple options. The ideal solution would be to contact your employer and ask them to issue a corrected 1099-MISC with the amount properly categorized in Box 3. They can void the incorrect form and issue a new one. If that's not possible due to time constraints, you can still file without getting a corrected form. In TurboTax, when it asks about the rental property associated with the Box 1 income, you can add an explanation in the notes section indicating this was incorrectly reported and is actually student loan assistance income. Then report the income exactly as shown on the form. The IRS matches the total amounts reported, not necessarily which box they appear in.

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Javier Mendoza

•8M

Adding an explanation note won't trigger an audit by itself. The IRS primarily matches the total dollar amounts reported, not which specific box they appear in. The explanation is more for your own records and to show good faith that you're trying to report correctly despite receiving an incorrect form. If you're particularly concerned, the best approach is still to contact your employer for a corrected 1099-MISC, as this removes any potential confusion. Most employers are willing to fix this kind of error since it's in their interest to have accurate tax reporting too.

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Malik Davis

•8M

I had a nearly identical situation last year with a retention bonus that got incorrectly coded as rent on my 1099-MISC. Spent HOURS going in circles with TurboTax before I discovered taxr.ai (https://taxr.ai) which saved me so much frustration. Uploaded my weird 1099-MISC and it immediately identified the miscategorization and gave me step-by-step instructions for handling it in TurboTax. Their system analyzed my form and explained exactly what to enter in which fields to properly report the income without triggering any verification issues. Even suggested the exact wording to use in the notes section to explain the discrepancy. Beats calling the employer begging for a correction when you're up against the filing deadline!

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Malik Davis

•8M

It does explain the tax implications! Box 1 (Rents) and Box 3 (Other Income) are both treated as ordinary income, but they have different reporting requirements. The tool explained that Box 1 income typically requires Schedule E reporting (for rental properties) while Box 3 goes directly on Schedule 1 as other income. This distinction matters for accurate filing even if the tax rate ends up being the same. The difference from TurboTax's help section is that taxr.ai actually analyzes your specific documents and provides personalized guidance rather than generic advice. It's like having a tax professional look at your exact situation without the high hourly rate. I was initially hesitant too, but the time saved and peace of mind was worth it for me.

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StarStrider

•8M

Just wanted to update everyone - I decided to try taxr.ai after struggling with this 1099-MISC issue for days. Honestly, I was really skeptical at first but figured I had nothing to lose. Uploaded my messed-up 1099 and within minutes I had clear instructions for exactly how to handle it in TurboTax. The system showed me which screens to navigate to in TurboTax and exactly what to enter where. It even explained that I needed to report it as shown on the original form (in Box 1) but add clarifying notes so everything would match IRS records. Super clear explanation of why my employer's mistake shouldn't cause issues with my return as long as I documented it properly. Definitely less stressful than waiting for my former employer to issue a corrected form that might never come!

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Ravi Gupta

•8M

If you're having trouble getting your employer to correct the 1099-MISC (which is the proper solution), you might want to try Claimyr (https://claimyr.com) to get direct help from the IRS. I had a similar issue with misreported income last year, and after weeks of getting nowhere with my former employer, I needed an official answer. Their service got me connected to a real IRS agent in about 15 minutes instead of the typical 2+ hour wait (or never getting through at all). You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent confirmed that I should report the income exactly as shown on the form but include a written statement explaining the error. This official guidance gave me confidence to file without worrying about potential issues later.

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Ravi Gupta

•8M

They use a system that continuously redials the IRS using their algorithm until it gets through, then it calls you once it has an agent on the line. It's not magic - it's just automation doing the frustrating redial part for you so you don't waste hours with your phone to your ear. It works because their system can make hundreds of call attempts using optimal timing patterns while you go about your day. Once they get through, you get a call letting you know an IRS agent is on the line waiting to talk to you. Totally understand the skepticism - I felt the same way until I tried it and was talking to an actual IRS representative within minutes.

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Omar Hassan

•8M

Ok I need to eat some crow here. After posting that skeptical comment yesterday, I decided to try Claimyr for an issue I've been dealing with for literally 3 months (unrelated to the original post - had a missing refund situation). Not gonna lie, I was 100% expecting it to be a waste of time and was ready to report them as a scam. But damn... I got a call back in about 20 minutes with an actual IRS agent on the line. The agent looked up my case and found that my refund had been flagged for review because of a mismatch with some reported income (ironically similar to the OP's situation with incorrectly reported income). Been trying to get this resolved for months with no luck getting through on my own. Now it's fixed and my refund should arrive within 3 weeks. Still shocked this actually worked.

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Chloe Anderson

•8M

Just a thought - have you tried calling your employer's payroll department? I work in HR and we occasionally make this mistake when coding special payments. Usually it's a simple data entry error where someone selected the wrong box in the payroll system. Most companies are happy to issue a corrected 1099-MISC because they don't want incorrect information reported to the IRS either. This would solve your TurboTax issue completely since you'd have a properly coded form.

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Chloe Anderson

•8M

That's frustrating! If you've already tried contacting them, I'd recommend following up one more time with a deadline - something like "I need this corrected by next Friday to file my taxes on time." Sometimes that creates more urgency. In the meantime, the workaround suggested by others is your best bet. Enter it exactly as shown on the form (so dollar amounts match IRS records) but add detailed notes explaining the discrepancy. The total income reported is what matters most from a tax calculation perspective.

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