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

[kittymelody336]

what is considered infrequent?

[TeresaM]

Income for participating in a clinical trial or medical study is taxable.  If the activity is infrequent, the income would not be self-employment income.  The IRS discussed that position in the Internal Revenue Service's Private Letter Ruling 9106004 regarding a participant in a medical study for asthma.

What that means is that it would be subject to income taxes, but not subject to self-employment tax.  It also would not qualify the participant for the earned income tax credit or any other tax benefit that is dependent on earned income such as an IRA deduction.

If you did receive a Form 1099-MISC , it is entered under the Wages and Income tab

• Check for More Income and See All Income
• Click on Show More then  Start beside Other Common Income by the icon of the green money bag
• Click onStart by Form 1099-MISC.
•  Enter Form 1099-MISC information.  Make sure you enter the amount in Block 3
•  under source of other income, select "other income"
•  "none of the above, show me other options"
• [You] were in a research study and this was payment,
• you did not perform a service to earn the money.

 If you did not receive a Form 1099-MISC, you will still enter it under Wages and Income but

• Scroll down to Less Common Income, by the gold dollar sign icon
• Click on See More and Start beside Miscellaneous Income
• Scroll down and click on Other Reportable Income
• Enter the amount and a description there.

[kittymelody336]

what is considered infrequent? if it is my only source of income and i participated every other month like im able to, would it then be self employment?

[fernaldiatides]

I am also interested in the answer to this question. Additionally, if the income was received to a foreign bank account in a foreign currency, is it also exempt from taxes or included in my overall foreign income?

[Rw54]

I did a medical study n was wondering which form do I need to file taxes?

[DawnC]

You may or may not have received a 1099-MISC form.  See TeresaM's answer at the top of the post.  She gives instructions to enter it if you did OR did not receive the 1099-MISC.  

[greencode96]

So I got a 1099 form, but it has all payments including compensation for travel which I thought was tax exempt. Do I put down the number I was given or asked the company to correct it.

[DawnC]

If your Form 1099-MISC has the income in Box 7 and you report it as self-employment, then you can deduct the travel expenses on your Schedule C.    

If you reported the income as Other Income (not self-employment using the directions above), you can't subtract the travel reimbursement as it is taxable income paid to you and non-deductible on your personal tax return.   There is no 'corrected' form to request in that situation. 

@greencode96   

[smickschl55]

I followed the steps above however I it keeps asking me for an EIN. I am not self employed, I was in a clinical trial and Turbo Tax will not let me file my taxes as it keeps saying I have to enter a Sch. C form since I have a 1099. 

[smickschl55]

My taxes were just rejected- please help!

[Critter]

@smickschl55 

What is the exact error message or code ?

[Tank1]

Thank you.

[rickadams543]

Turbo tax should allow you to file a Schedule C without an EIN.

But if you need an EIN, you can get one free on the IRS.gov website. Just look up EIN.

[lwiant]

;Apparently the EIN is still required.  It's a problem because the Schedule C requires it to be handled like you're self-employed, leading to a whole host of errors and issues.  I'm not real interested in getting an EIN as this is my employment by any stretch of the imagination.  Leaning towards just reporting it as miscellaneous income.