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.
Effective starting tax year 2020 - Form 1099-MISC will no longer report nonemployee compensation in box 7. Nonemployee compensation will be reported to the taxpayer using Form 1099-NEC with the nonemployee compensation listed in box 1. All prior years will still use the 1099-MISC for nonemployee compensation.
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.