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Category: 1099's

How do I report my 1099-MISC in my account?

Form 1099-MISC is an interesting form as it is used to report different types of income to taxpayers. Where in your return this income will be reported depends on what box of the 1099-MISC the income is shown. TaxSlayer has made reporting your 1099-MISC income very easy. Our program will automatically carry your 1099-MISC income exactly where it needs to go. All you need to do is just enter your 1099-MISC income within your TaxSlayer account. To do so, from the My Account screen, select Federal Section >> Income >> Enter Myself >> Form 1099-MISC.


Note: If you received more than one Form 1099-MISC, you must enter them separately in your TaxSlayer account. DO NOT combine separate 1099-MISC forms into one entry.


Provided below are brief descriptions for the type of income reported in each Form 1099-MISC box.


* Box 1: This box is used to report rental income of $600 or more for all types of rents. For additional information, please refer to the Schedule E Instructions.


* Box 2: This box is used to report certain types of royalties that you have received such as royalty income from intangible assets like patents, copyrights, trade names, and trademarks. For additional information regarding royalty income, you can also refer to the Schedule E Instructions. For royalties on timber, coal, and iron ore, see IRS Publication 544, Sales and Other Dispositions of Assets.


* Box 3: 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 or the National Guard, or other taxable income. The amount listed here will be pulled to line 21 of Form 1040, Other Income.  See IRS Publication 525, Taxable and Nontaxable Income.



*Note: If it is trade or business income, report this amount on Schedule C, or C-EZ (Income Menu > Profit or Loss From a Business within your account on TaxSlayer).


* Box 4: Shows backup withholding or withholding on Indian gaming profits. Generally, a payer must backup withhold at a 28% rate if you did not furnish your taxpayer identification number. See Form W-9, Request for Taxpayer Identification Number and Certification, or Publication 505 for more information.


* Box 5: An amount in this box means the fishing boat operator considers you self-employed. See IRS Publication 334, Tax Guide for Small Businesses.


* Box 6: For individuals, report directly on Schedule C or C-EZ (Income Menu > Profit or Loss From a Business within your account on TaxSlayer).


* Box 7: Shows nonemployee compensation. If you are in the trade or business of catching fish, box 7 may show cash you received for the sale of fish. If payments in this box are for work or services you performed as an independent contractor, this income will carry to Schedule C within your account on TaxSlayer). You received this form instead of Form W-2 because the payer did not consider you an employee and did not withhold income tax or social security and Medicare taxes. Contact the payer if you believe this form is incorrect or has been issued in error. If you believe you are an employee, call the IRS for information on how to report any social security and Medicare taxes or see Form 8919, Uncollected Social Security and Medicare Taxes on Wages.


* TaxSlayer will automatically calculate the applicable self-employment tax you will be subject to based on the information provided in your Schedule C entries


* 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. Report on the “Other income” line of Form 1040 (Income Menu > Other Income > Income Not Reported Elsewhere (1099-Misc) within your account on TaxSlayer).


* 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, report any income from your sale of these products on Schedule C or C-EZ (Income Menu > Profit or Loss From a Business within your account on TaxSlayer).


* Box 10: This box is used to report crop insurance proceeds of $600 or more. This figure will automatically carry to the Schedule F within your account.


* Box 13: Shows your total compensation of excess golden parachute payments subject to a 20% excise tax. See the Form 1040 Instructions for where to report.


* Box 14: Shows gross proceeds paid to an attorney in connection with legal services. Report only the taxable part as income on your return.


* Box 15a: Shows current year deferrals as a nonemployee under a nonqualified deferred compensation (NQDC) plan that is subject to the requirements of section 409A. Any earnings on current and prior year deferrals are also reported.


* Box 15b: Shows income as a nonemployee under an NQDC plan that does not meet the requirements of section 409A. This amount is also included in box 7 as nonemployee compensation. Any amount included in box 15a that is currently taxable is also included in this box. This income is also subject to a substantial additional tax to be reported on Form 1040. See “Total Tax” in the Form 1040 instructions.


For additional information regarding Form 1099-MISC, please refer to the IRS Instructions.