Form 1099-MISC is used to report a variety of miscellaneous payments to an individual. These payments can be for services rendered by non-employees, rents, royalties, prizes and awards, etc.
Generally, any amounts in Box 3 of the Form 1099-MISC are reported as Other Income on Form 1040 Schedule 1 Line 21.
Amounts reported in Box 7 are non-employee compensation. If payments in this Box are self-employment income, report this amount on Schedule C, E, or F (Form 1040) as appropriate. In this case, the taxpayer received this form instead of Form W-2 because the payer did not consider them an employee and thus did not withhold income tax or social security and Medicare tax.
NOTE: If the taxpayer believes that they are an employee and cannot get the payer to correct this form, report the amount from Box 7 on Form 1040 Line 1, or for tax years prior to 2018 on Form 1040 Line 7 (or for nonresident filers on Form 1040NR Line 8). You must also complete Form 8919 and attach it to the return.
To enter a 1099-MISC in TaxSlayer Pro, from the Main Menu of the Tax Return (Form 1040) select:
- Income Menu
- Form 1099-MISC
- Select New and, if prompted, indicate if the 1099-MISC is for the taxpayer or spouse
- Key in the information on the 1099-MISC:
- If the payment is in Box 1, Rents, after exiting the 1099-MISC entry screen you will be queried if you would like to link it to a Schedule E. Answer Yes or No as appropriate, bearing in mind that not linking the 1099-MISC to a Schedule E will result in the return not being e-fileable.
- If the payment is in Box 1, Rents, check the "100%" check Box if the taxpayer has 100% ownership over the property receiving the rents. If not, leave the check Box unchecked and adjust the ownership percentage in the property details in Schedule E.
- If the payment is in Box 2, Royalties, Box 5, Fishing boat proceeds, Box 6, Medical and health care payments, or Box 7, Nonemployee compensation, after exiting the 1099-MISC entry screen you will be queried if you would like to link it to a Schedule C. Answer Yes or No as appropriate, bearing in mind that not linking the 1099-MISC to a Schedule C will result in the return not being e-fileable.
- If the payment is in Box 3, Other Income, click the "Link" check Box to link the 1099-MISC to Schedule C, E, or F, if appropriate, and you will be prompted which schedule to link to after exiting the 1099-MISC entry screen. Otherwise, leave the "Link" check box unchecked and the amount will flow to Form 1040 Schedule 1 Line 21, Other Income (or Form 1040NR Line 21, Other Income).
- If the payment is in Box 10, Crop Proceeds, after exiting the 1099-MISC entry screen you will be queried if you would like to link it to a Schedule F. Answer Yes or No as appropriate, bearing in mind that not linking the 1099-MISC to a Schedule F will result in the return not being e-fileable.
NOTE: This is a guide on entering Form 1099-MISC into the TaxSlayer Pro program. This is not intended as tax advice.
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