Questions & Answers

Does it matter which box my 1099-MISC income is reported in?

Explanation of some of the boxes on Form 1099 MISC:

Box 1:
Report rents from real estate on Schedule E. 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 Schedule C-EZ.

Box 2:
Report royalties from oil, gas, or mineral properties, copyrights, and patents on Schedule E. However, if it's business income, then it would be reported on Schedule C.

For royalties on timber, coal, and iron ore, see IRS Publication 544.

Box 3:
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 Schedule F.

Box 5:
An amount in this box means the fishing boat operator considers you self-employed. This is shown on Schedule C or Schedule C-EZ.

Box 6:
This amount represents medical and health care payments. For individuals, this amount is reported on Schedule C.

Box 7:
Shows non-employee compensation. If payments in this box are self-employment (SE) income, this amount is reported on Schedule C, C-EZ, or Schedule F. 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 tax.

Box 8:
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.

Box 9:
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 Schedule C-EZ.

Box 10:
This amount is shown on Line 6 of Schedule F.

If you have multiple 1099-MISCs, enter each one separately.

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