Investors & landlords
The box you are referring to is for making an ADJUSMENT to the 1099-MISC.
The adjustment is subtracted.
The 1099-MISC for a prize is listed on Schedule 1 line 8i. So you should see 1,240 on Schedule 1 line 8i.
The adjustment is listed on Schedule 1 line 8z.
The adjustment is SUBTRACTED from the Other Income amounts.
If you enter 1,240 for the 1099-MISC and zero as an adjustment, you are taxed on 1,240 income.
If you enter 1,240 for the 1099-MISC and 1,240 as an adjustment, you are taxed on 0 income.
