A 1099-MISC is used to report different types of income. Based on which box the entry is in and what the income is for, you will report the income differently on your tax return.
The two most common entries on Form 1099-MISC are Box 3, Other Income and Box 7, Nonemployee Compensation.
- Box 3 entries are generally just included on line 21 of Schedule 1, of your return as Other Income.
- Box 7 amounts you generally have to fill out a Schedule C and treat the income as if you earned it from operating your own business.