1099-misc

[Mimidoingtaxes]

My son received a 1099-Misc.  Box 14 was checked.  This was from a settlement from a summer job employer for reimbursement of medical bills for getting hurt on the job.  It was over just $2,000.00. How much of this is consisted taxable income when it is a reimbursement for medical bills from the prior year?  And why is it being considered a Business income?  He is not self-employed. 

Also, is there an amount of a 1099-MISC you don't have to report?  My daughter-in-law received one for $3.25.

[ColeenD3]

 This is taxable as Other Income, but it is NOT subject to employment taxes.  To enter it on your return, follow the instructions below:

• Sign into your return and Take me to my return.
• Choose the Federal return and the Wages & Income tab.
• Scroll down to Less Common Income and Show more.
• Choose Miscellaneous Income, 1099-A, 1099-C.
• Choose Other Reportable Income and say Yes.
• Even though the screen says "Do not enter income reported on Form 1099-MISC", this is where you will enter the description "1099-MISC for Medical reimbursement," the amount you received, and who received it.

[Mimidoingtaxes]

Thank you so much for your instructions, I had no problems following them.

I really appreciated you help.