@Carl wrote:
Box 3 of the 1099-MISC is for *EARNED* income.
That statement is wrong; Box 3 on a 1099-MISC is not necessarily for earned income (the instructions for Box 3 are reproduced below) but can encompass other types of income.
The amount shown may be payments received as the beneficiary of a deceased employee, prizes, awards, taxable damages, Indian gaming profits, or other taxable income. See Pub. 525. If it is trade or business income, report this amount on Schedule C or F (Form 1040).
@Carl wrote:
Just because the cornell.edu website says it's correct, means nothing. Cornell University is "NOT" a taxing authority and they don't pass, write or make tax law at any level of government.
There is a basic miscomprehension here as well; with respect to Title 26, cites to the Cornell University web site (www.law.cornell.edu) are cites to the tax code (or Regs) and mean everything. Cornell provides a repository for the code and regs.
