Income question: Does income from a medical study have to be reported? If so how?

[JulieS]

Yes, getting them to correct the 1099-MISC would be the best outcome, but I have seen many cases where the issuer won't correct the form even if they know they are wrong. 

I also stand by my answer. The IRS is not as aggressive about 1099-MISC form any more and if you are questioned, the fact that your wife is not a doctor is your best defense. 

[shughes1]

I see that these questions and answers are from 2021 and 2022; I have the same question in 2023 as I do my 2022 taxes.  My husband got a 1099-MISC for his medical trial, and the payment is listed in box 3 as it should be.  But when I enter it correctly, it takes me down the self-employment path, asking many questions about his business, etc.  I see that I can follow the advice to enter it as Other Taxable Income, although the instructions on that screen specifically say Do NOT enter income reported on Form 1099-MISC.  Was it successful last year to report it there anyway?

[MarilynG1]

In the 1099-Misc section, you can indicate that the income was received for a 'Research Study' and you will not go down the Self Employment Path.

However, entering the income under 'Other Reportable Income' is also acceptable for the IRS.  

@shughes1 

[shughes1]

Turns out I had used the Research Study option previously.  I only ran into  problems when I did the smart scan -- it errored on all of the Schedule C lines that were not filled in.   I had answered Y to the question "did you perform a service to earn this money," and apparently that's what generated the Schedule C.   I changed the  answer to N, but that didn't remove the Schedule  C that had been created, even after I completely deleted everything I had entered about the 1099-MISC and started over.  Looking at the forms screen I found the "unnamed" Schedule C that had generated the errors, as well as the Schedule C titled "Medical Research Study."  I deleted the unnamed Schedule C and that eliminated the errors in the  scan.   So the  final answer was  to  answer NO to  whether services were performed to earn the money from the research study.