topic 1099-misc in Business & farm

1099-misc

Mimidoingtaxes — Sun, 22 Mar 2020 14:00:37 GMT

My son received a 1099-Misc. Box 14 was checked. This was from a settlement from a summer job employer for reimbursement of medical bills for getting hurt on the job. It was over just $2,000.00. How much of this is consisted taxable income when it is a reimbursement for medical bills from the prior year? And why is it being considered a Business income? He is not self-employed.

Also, is there an amount of a 1099-MISC you don't have to report? My daughter-in-law received one for $3.25.

Re: 1099-misc

ColeenD3 — Sun, 22 Mar 2020 14:20:29 GMT

This is taxable as Other Income, but it is NOT subject to employment taxes. To enter it on your return, follow the instructions below:

Sign into your return and Take me to my return.
Choose the Federal return and the Wages & Income tab.
Scroll down to Less Common Income and Show more.
Choose Miscellaneous Income, 1099-A, 1099-C.
Choose Other Reportable Income and say Yes.
Even though the screen says "Do not enter income reported on Form 1099-MISC", this is where you will enter the description "1099-MISC for Medical reimbursement," the amount you received, and who received it.

Re: 1099-misc

Mimidoingtaxes — Mon, 30 Mar 2020 01:32:00 GMT

Thank you so much for your instructions, I had no problems following them.

I really appreciated you help.