A Form 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 1, Rental Income and Box 3. Other Income.
- Box 1 entries for rental income must be reported on a Schedule E.
- Box 3 entries are generally just included on line 8 of Schedule 1, of your return as Other Income.
Note: Form 1099-MISC does not report nonemployee compensation. Nonemployee compensation will be reported to the taxpayer using Form 1099-NEC with the nonemployee compensation listed in box 1.