Miscellaneous Income Form 1099 Tips & Help
- Does it matter which box my income is reported in?
- Should my Form 1099 MISC income be reported on Schedule C ?
- What if my income is not self-employment income?
- What if my Box 7 amount is not nonemployee compensation?
- How do I match my 1099-MISC with a Schedule C ?
- I am a contractor and do not have a business. How do I enter my 1099-MISC without entering a business?
- Do I have to enter a 1099-MISC record?
- I have a 1099-MISC with Box 7 nonemployee compensation. I don't have a business, why do I have to do a Schedule C ?
Boxes 1 and 2:
Reports rents from real estate on Schedule E (Form 1040). If you provided significant services to the tenant, sold real estate as a business, or rented personal property as a business, then it is shown on Schedule C or C-EZ (Form 1040).
Generally, this amount is shown on the line labeled "Other income" on Form 1040. The amount shown may be payments received as the beneficiary of a deceased employee, prizes, awards, taxable damages, Indian gaming profits, payments made by employers to former employees who are serving in the Armed Forces, the National Guard, or other taxable income. See Pub. 525, Taxable and Nontaxable Income. If it is trade or business income, it is reported on Schedule C, C-EZ, or F (Form 1040).
An amount in this box means the fishing boat operator considers you self-employed. This is shown on Schedule C or C-EZ (Form 1040).
Shows non-employee compensation. If payments in this box are self-employment (SE) income, this amount is reported on Schedule C, C-EZ, or F (Form 1040). You received Form 1099 MISC instead of Form W-2 (W2) because the payer did not consider you an employee and did not withhold income tax or Social Security and Medicare taxes.
Shows substitute payments in lieu of dividends or tax-exempt interest received by your broker on your behalf as a result of a loan of your securities. This amount is shown on the line labeled "Other income" of Form 1040.
If checked, $5,000 or more of sales of consumer products was paid to you on a buy-sell, deposit-commission, or other basis. A dollar amount does not have to be shown. Generally, any income from your sale of these products is shown on Schedule C or C-EZ (Form 1040).
This amount is shown on Line 6 of Schedule F (Form 1040).
If it's for work you did on the side, such as consulting income or any type of income that you received for services you did, then it is shown on Schedule C and requires self-employment taxes to be paid.
However, you should have the payer reissue another 1099-MISC to you and have the amount put in Box 3 of the 1099-MISC as Other Income instead of Box 7 as Nonemployee Compensation. Otherwise the IRS will expect you to report the Box 7 nonemployee compensation on Schedule C or Schedule F and pay self-employment taxes on it.
If you're filing a joint return with your spouse, make sure that the business owner for the Schedule C on the Basic Business Information screen matches the person who received the 1099-MISC
I am a contractor and do not have a business. How do I enter my 1099-MISC without entering a business?
Click on the Business Income (Schedule C) link in the Business Income section of the menu. Add a business record. On the Basic Business Information screen, just enter a short description of the type of work you did for the business description. If you did consulting work, type in something like business consultant or consulting service for the business description. Select the business code that best describes the type of work you are doing. Select "Cash" as the type of accounting method used. All of the other questions usually can be left blank. Then on the next screen, you select the checkbox for the Form 1099-MISC income that relates to the Schedule C. The next screens will ask for business expenses, but if you do not have any, you can just keep going through those screens without entering anything. Your 1099-MISC income will then correctly show up on Schedule C and be subject to the self-employment taxes.
If you know where the income should be reported and you do not have any federal tax withheld shown on the 1099-MISC, you could choose to skip entering the 1099-MISC and just enter the income directly on a Schedule C record, Royalty record, Rental record, Farm Income record, or as Other Income on the on the Other Income screen in the Uncommon Income section. If you do enter the income directly on one of those records, make sure you don't have it entered as a 1099-MISC also, if you do that then the income will be doubled on your Schedule C, etc.