Form 1099-MISC is used to report various types of miscellaneous income to the IRS. The way this income is reported on your tax return depends on which box the income appears in. Our tax software simplifies this process by either automatically transferring the income to the correct location or prompting you to complete the necessary forms.
Note: 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 in the Program
To enter your Form 1099-MISC:
- Go to Federal Section
- Select Income
- Click My Forms
- Choose Form 1099-MISC, Miscellaneous Income
Note: 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.
Box-by-Box Guide to Form 1099-MISC
Box 1 – Rents
Reports rental income of $600 or more. This income is typically reported on Schedule E.
- After entry, click +Create a New Schedule E Rent and Royalty or use an existing Schedule E.
- For additional information, please refer to the Schedule E Instructions.
Box 2 – Royalties
Includes royalties from intellectual property like patents or copyrights. Also reported on Schedule E.
- Follow the same steps as Box 1 to assign the income to Schedule E.
- 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 1of Form 1040, Other Income. See IRS Publication 525, Taxable and Nontaxable Income.
Note: 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
Shows backup withholding, typically at 28%. Refer to Form W-9 or Publication 505 for more details.
Box 5 – Fishing Boat Proceeds
Indicates self-employment income. See IRS Publication 334.
Box 6 – Medical and Health Care Payments
This includes "payments made by medical and health care insurers under health, accident, and sickness insurance programs." (1099-MISC instructions)
Box 7 – Direct Sales
Checkbox only. Indicates $5,000 or more in direct sales for resale. No dollar amount is shown.
Box 8 – Substitute Payments
Reports payments in lieu of dividends or tax-exempt interest. Report this on Form 1040, Schedule 1 – Other Income.
To enter:
- Go to Federal Section > Income > My Forms > Less Common Income > Income Not Reported Elsewhere
Box 9 – Crop Insurance Proceeds
Reports $600 or more in crop insurance proceeds.
- Assign to Schedule F by clicking +Create a New Schedule F or using an existing one.
Box 10 – Gross Proceeds Paid to Attorneys
Report only the taxable portion. Attorneys should report this on Schedule C.
Box 12 – Nonqualified Deferred Compensation (NQDC)
Shows current year deferrals under an NQDC plan. Also appears in Box 1 of Form 1099-NEC.
Box 14 – Excess Golden Parachute Payments
Subject to a 20% excise tax. 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.