Hi @DefenderCSW
Thank you for this question! When you receive an amount in box 8, it represents Substitute Payments in Lieu of Dividends or Interest. The result is you are receiving a payment in place of a dividend or interest, which is taxed at ordinary rates. On the back of the 1099-Misc you will see instructions for box 8 that reads “Box 8. Shows substitute payments in lieu of dividends or tax-exempt interest received by your broker on your behalf as a result of a loan of your securities. Report on the “Other income” line of Schedule 1 (Form 1040).”
I’ve found a related article for these types of transactions that I think you will find interesting and pasted it below. It discusses how these types of payments come into being and the impact on your taxes.
What Is a Substitute Payment in Lieu of Dividends? | The Motley Fool
Thanks again and have a great day!
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