Yes, you should report the income on the 1099-MISC as other
income on Line 21, which is where you will also enter the “deduction” amount.
You can report as Miscellaneous Income:
- Click on Wages and Income
- Scroll to Less Common Income
- Click the button beside “Miscellaneous Income, 1099-A,
1099-C”
- Click the button beside “Other Reportable Income”
- You will be asked if you have Other Taxable Income. Answer Yes.
- You can enter a description and an amount.
- Click Continue.
- This will take you to “Other Miscellaneous Income Summary”
- Click “Add Another Miscellaneous Income Item”
- Now enter the corresponding “deduction” (as a negative
number)
It would be a good idea to enter detail for the deduction
indicating the income is reported by (name of company) and reported under FEI
#xxx.
