I have been thinking about this question. My approach would be to break down and buy the TurboTax Basic software for $40 on Amazon. Then, you can enter the data from the 1099-misc form directly into TurboTax. While, technically, the correct form may be a 1099-R, it may not be entirely illegal to report the income on a 1099-misc form. It would give me at least $40 worth of peace of mind to know that I prepared my tax return correctly, based on the information reported to me. And, it would be worth more than $40 if it avoids a nasty letter and an electronic audit from the IRS. By the way, the 1099-misc income will appear on Line 8 of your Form 1040.
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