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ShadowDog
New Member

1099-MISC Box 10

I received a 1099-MISC with the income information provided in Box 10 Gross proceeds paid to an attorney. When I attempted to enter this 1099 there was no box 10 for me to place this number in?

48 Replies
DavidD66
Employee Tax Expert

1099-MISC Box 10

It sounds like you may have an old Form 1099-MISC.  Prior to 2020, Form 1099-MISC was used to report Non-Employee Compensation.  It went in Box 7.  The IRS made changes, and introduced a new form, 1099-NEC to report Non-Employee Compensation.  Changes were made to Form 1099-MISC, and Box 7 is now a check box.  If your 1099-MISC was for payments you received as an independent contractor/self employed worker, then I suggest you enter the 1099-MISC as a 1099-NEC, and enter your Non-Employee Compensation in Box 1 on the entry screen.

 

Alternatively, you can contact the issuer about providing you a new, corrected Form 1099.

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TomD8
Level 15

1099-MISC Box 10

Both forms are still used.  According to IRS instructions:

 

1)   Attorneys' fees of $600 or more paid in the course of your trade or business are reportable in box 1 of Form 1099-NEC, under section 6041A(a)(1).

 

2)  Under section 6045(f), report in box 10 (of Form 1099-MISC) payments that:

  • Are made to an attorney in the course of your trade or business in connection with legal services, but not for the attorney’s services, for example, as in a settlement agreement;

  • Total $600 or more; and

  • Are not reportable by you in box 1 of Form 1099-NEC.

https://www.irs.gov/instructions/i1099msc#idm140364727241152

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Thisisbad
Returning Member

1099-MISC Box 10

TomD8 is correct. The 2020 Form 1099-MISC has a Box 10.

 

Inexplicably, TurboTax does not have a field for Box 10 as part of the EasyStep process. However, you *can* enter the information directly on the Form 1099-MISC.

 

Start by entering the Payer's Name and TIN in the EasyStep process, that will create a 1099-MISC worksheet. Then click "Forms" in the upper left corner. That will open up a left sidebar with the Federal Forms. Click on the "1099-MISC Wks" for that Payer in the left sidebar. That will bring up *all* the fields for the 1099-MISC. Enter the gross proceeds in Box 10 (and the other two fields in Box 10). Then click "EasyStep" in the upper left to return to the EasyStep process and save the 1099-MISC. (It will again prompt you to confirm the amount of the gross proceeds that are taxable.)   

 

TurboTax - you should fix this. There is no reason to hide Box 10.

Frus payer
New Member

1099-MISC Box 10

I have an amount in box 10.  It was for a settlement with a past employer.  I was not self employed but it keeps asking me to enter a business name as if I was self employed.  How do I get around this?

 

WendyN2
Level 7

1099-MISC Box 10

For an item such as this, you will need to enter it into "Other Income". The following is how to do this in TurboTax when you do not have a Schedule C:

 

     1.  Click on "Federal Taxes" tab, then "Wages and Income" and the page will be titled "Your 2020 Income Summary"

     2.  Scroll down the page to the "1099-MISC and Other Common  Income" section

     3.  You will then see under this "Income from Form 1099 Form -MISC"

     4.  Click on that "Start" button to the right, select "Yes", then enter the Payor Name and FID or SS# (whichever is on the 1099-MISC)

     5.  Then check the box next to "my form has other info in boxes 1-17" . This will then populate more places to fill out information

     6.  You will then enter the amount in box 10 of your 1099-MISC into the appropriate box 10 on the screen.

     7.  If any taxes were withheld, be sure to enter that information as well here.

     8.  Proceed to the next screen...there it will ask you what portion is taxable. In your situation, unless there was some other side

            agreement, the total amount is taxable so you would enter the same amount in the appropriate box.

     9.  STOP!!  THEN, DO NOT CLICK ON "Continue", instead look up at the top and click on the tab that says "Deductions and

            Credits". OTHERWISE, the system will assume the 1099 belongs to a Schedule C and it will proceed to populate one for you.

            So, just do not hit continue on that last screen - exit out by selecting the tab at the top.

prem
Returning Member

1099-MISC Box 10

this solution did not work for me on the TTpremier 2020. Any other solution

DianeW777
Employee Tax Expert

1099-MISC Box 10

The form and the payment in Box 10, indicate you received the form for the following reason.

 

Gross proceeds paid to attorneys. - Instructions for who must file Form 1099-MISC

Under section 6045(f), report in box 10 payments that:

  • Are made to an attorney in the course of your trade or business in connection with legal services, but not for the attorney’s services, for example, as in a settlement agreement;

  • Total $600 or more; and

  • Are not reportable by you in box 1 of Form 1099-NEC. 

Generally, you are not required to report the claimant's attorney's fees. For example, an insurance company pays a claimant's attorney $100,000 to settle a claim. The insurance company reports the payment as gross proceeds of $100,000 in box 10. However, the insurance company does not have a reporting requirement for the claimant's attorney's fees subsequently paid from these funds.

These rules apply whether or not:

  • The legal services are provided to the payer;

  • The attorney is the exclusive payee (for example, the attorney's and claimant's names are on one check); or

  • Other information returns are required for some or all of a payment under another section of the Code, such as section 6041.

If you are not in business as an attorney, and if you received some type of settlement, then is is income to you as miscellaneous income.

 

You can use the following steps to enter your income in this situation where the income is not reported on Form 1099-NEC as self-employment:

  1. Sign into your TurboTax account > Select Wages and Income > Scroll to Less Common Income
  2. Select Miscellaneous Income, 1099-A, 1099-C, Start or Revisit > Other reportable income, Start or Revisit
  3. Any other taxable income answer yes > Enter your description and amount
  4. See the image below

 

 

Drurybt
Level 3

1099-MISC Box 10

The screenshot references using this method if there was no W-2. Will this still work if I did receive a W-2 along with the 1099-MISC?

 

Won’t the IRS have an issue if I don’t report a form that I received?

TomD8
Level 15

1099-MISC Box 10

@Drurybt --

 

"The screenshot references using this method if there was no W-2"

 

The screen shot gives that as an example, not as a requirement.

 

"Won’t the IRS have an issue if I don’t report a form that I received?"

 

Yes, if it's a form reporting taxable income.

 

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Drurybt
Level 3

1099-MISC Box 10

No matter what way I put in the information under the 1099-MISC, TurboTax keeps saying this is self employed income and wants me to create a Schedule C. I am NOT self employed and the 1099-MISC is from a lawsuit settlement. I have read multiple threads where people have this same issue and while all of the solutions given make sense, they do not avoide the prompt for a Schedule C.

 

I have even gone as far as creating a Schedule C just so I can push through and file (since I've already been charged....) but it gives me a business deduction, which I obviously shouldn't be taking because I dont own a business....

TomD8
Level 15

1099-MISC Box 10

@Drurybt --

 

Perhaps this will help:

Where do I enter an award from a taxable legal set... (intuit.com)

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
DawnC
Employee Tax Expert

1099-MISC Box 10

So, you have a W-2 and what other form, 1099-MISC or 1099-NEC.   And what boxes of the 1099 have amounts in them?   

 

You will be able to enter the income without the Schedule C, but let me know the answers to the above 2 questions.   @Drurybt

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Drurybt
Level 3

1099-MISC Box 10

@TomD8 

 

I cleared out the 1099-MISC and followed those exact steps just to double check and I'm still prompted for a Schedule C (screenshot below). 

 

The only thing I can think of is that it's prompting because there is a gross attorney fees in box 10, but even if I leave that blank, it still says I need to do a Schedule C at filing. 

 

 
 

Schedule C.PNG

Drurybt
Level 3

1099-MISC Box 10

@DawnC 

 

I received both a W-2 and 1099-MISC for a lawsuit settlement. The 1099-MISC has $150 in Box 3 Other Income, and $139.80 in Box 10 Gross Proceeds Paid To Attorney. 

 

I thought the amount in Box 10 should only be there if I was the attorney and getting paid for that reason, hence the need for a Schedule C, but that is not the case here.  I called the hotline for the lawsuit settlement and asked if the amount in box 10 should be there and they confirmed it should. 

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