Form 1099-MISC, Miscellaneous Information, reports certain types of income that don't fit into more common tax forms like Form W-2 or Form 1099-INT. The way you report the income depends on which box contains the amount.
The good news? Our software helps simplify the process. In many cases, amounts entered from Form 1099-MISC automatically flow to the correct place on your return. When additional information is needed, the program will guide you through the required steps.
Important: Form 1099-MISC is no longer used to report nonemployee compensation. That income is now reported on Form 1099-NEC, Box 1.
How to Enter Form 1099-MISC
- Select Federal.
- Select Income and then My Forms.
- Select Form 1099-MISC.
Important: If you received more than one Form 1099-MISC, you must enter them separately in your account. DO NOT combine separate 1099-MISC forms into one entry.
Form 1099-MISC Box-by-Box Guide
Box 1 – Rents
Reports rental income payments of $600 or more. Rental income is typically reported on Schedule E (Supplemental Income and Loss).
- Select + Create a New Schedule E Rent and Royalty or choose an existing Schedule E.
- Complete the Schedule E information for the property.
For additional information, please refer to the Schedule E Instructions.
Box 2 – Royalties
- Copyrights
- Patents
- Mineral rights
- Other intellectual property
Royalty income is generally reported on Schedule E.
After entering the form:
- Select + Create a New Schedule E Rent and Royalty or choose an existing Schedule E.
- Complete the royalty details when prompted.
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 – Other Income
This box may include:
- Prizes and awards
- Taxable damages
- Indian gaming profits
- Payments to military personnel
- Other miscellaneous taxable income
The amount listed here will be pulled to line 8 of Schedule 1 of Form 1040, Other Income. See IRS Publication 525, Taxable and Nontaxable Income.
Important: If it is trade or business income, report this amount directly on Schedule C instead of listing on Form 1099-Misc.
- Federal Section
- Income -Select My Forms
- Profit or Loss from Business, report on a Schedule C
Box 4 – Federal Income Tax Withheld
Refer to Form W-9 or Publication 505 for more details.
Box 5 – Fishing Boat Proceeds
Reports payments received by crew members from fishing boat operations.
This income is generally treated as self-employment income and may require Schedule C and Schedule SE reporting.
See IRS Publication 334.
Box 6 – Medical and Health Care Payments
Reports payments made by medical and health care insurers under health, accident, or sickness insurance programs.
The tax treatment depends on the nature of the payment and the taxpayer receiving it.
See IRS 1099-MISC instructions.
Box 7 – Direct Sales
This box contains only a checkbox.
A checkmark indicates that the payer made at least $5,000 of consumer product sales for resale purposes. No income amount appears in this box.
Reports substitute payments received instead of actual dividends or tax-exempt interest.
These amounts are generally reported as Other Income.
To enter Box 8 income:
- Select Federal.
- Select Income and then My Forms.
- Select Less Common Income.
- Select Income Not Reported Elsewhere.
Box 9 – Crop Insurance Proceeds
Reports crop insurance proceeds of $600 or more.
These amounts are generally reported on Schedule F (Profit or Loss From Farming).
To report this income:
- Select + Create a New Schedule F or use an existing Schedule F.
- Complete the farming income information as prompted.
Box 10 – Gross Proceeds Paid to Attorneys
Reports gross proceeds paid to attorneys in connection with legal services.
Only the taxable portion should be reported on the tax return. Attorneys receiving this income generally report it as business income on Schedule C.
Box 12 – Nonqualified Deferred Compensation (NQDC)
Reports certain deferred compensation amounts under a nonqualified deferred compensation plan.
This amount may also appear on Form 1099-NEC, depending on the circumstances.
Box 14 – Excess Golden Parachute Payments
Reports excess golden parachute payments that may be subject to an additional 20% excise tax.
Special reporting rules apply.
See Form 1040 Instructions for reporting.
Box 15 – NQDC Income Not Meeting Section 409A
Also included in Box 1 of 1099-NEC. Subject to additional tax. See Form 1040/1040-SR Instructions.
Boxes 16–18 – State Information
Show state income and tax withholdings.
Additional Information
To view a sample 1099-MISC go here: click here
For additional information regarding Form 1099-MISC, please refer to the IRS Instructions.