topic what is considered infrequent? in Retirement tax questions

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

pldv — Tue, 04 Jun 2019 21:03:16 GMT

what is considered infrequent?

kittymelody336 — Tue, 04 Jun 2019 21:03:17 GMT

what is considered infrequent?

Income for participating in a clinical trial or medical s...

TeresaM — Tue, 04 Jun 2019 21:03:18 GMT

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.

what is considered infrequent? if it is my only source of...

kittymelody336 — Tue, 04 Jun 2019 21:03:20 GMT

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?

I am also interested in the answer to this question. Addi...

fernaldiatides — Tue, 04 Jun 2019 21:03:21 GMT

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?

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

Rw54 — Tue, 04 Feb 2020 22:01:32 GMT

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

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

DawnC — Tue, 04 Feb 2020 22:10:41 GMT

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.

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

greencode96 — Thu, 27 Feb 2020 19:39:05 GMT

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.

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

DawnC — Fri, 28 Feb 2020 18:42:53 GMT

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

Re: Income for participating in a clinical trial or medical s...

smickschl55 — Sat, 13 Jun 2020 15:46:07 GMT

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.

Re: Income for participating in a clinical trial or medical s...

smickschl55 — Sat, 13 Jun 2020 17:00:49 GMT

My taxes were just rejected- please help!

Re: Income for participating in a clinical trial or medical s...

Critter — Sat, 13 Jun 2020 18:53:06 GMT

@smickschl55

What is the exact error message or code ?

Re: Income for participating in a clinical trial or medical s...

Tank1 — Tue, 15 Dec 2020 14:41:56 GMT

Thank you.

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

rickadams543 — Thu, 17 Dec 2020 13:59:15 GMT

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.

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

lwiant — Mon, 08 Mar 2021 18:00:45 GMT

;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.

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

Irene2805 — Mon, 08 Mar 2021 18:10:51 GMT

You do not need an EIN if you enter the income in TurboTax as "Other Common Income," which is reported on line 8 of 1040 Schedule 1 and will not generate Schedule C or SE tax. Please use the following steps:

Click on Federal > Wages & Income.
Scroll down to the Other Common Income section.
Click on the Start/Revisit box next Form 1099-MISC.
On the screen Did you get a 1099-MISC? click on the Yes button.
On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.
On the following screens, answer the following questions:
- Did it involve work that's like your main job? No.
- You got it in 2020
- No, it didn't involve an intent to earn money

7. Continue through the rest of the interview screens. The income will appear as Other Income.

@lwiant

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

Laurennk22 — Fri, 23 Apr 2021 01:48:26 GMT

What if this is the same situation but I received a 1099-NEC?? Please help, not sure what to do. Thanks.

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

Laurennk22 — Fri, 23 Apr 2021 01:56:24 GMT

What if this is the same situation but I received a 1099-NEC?? Please help, not sure what to do. Thanks @Irene2805

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

LinaJ2020 — Fri, 23 Apr 2021 16:38:21 GMT

You will still enter your info under "Other Income". Here are the steps:

In TurboTax online,

Sign into your account, select Pick up where you left off
To the right upper corner, in the search box, type in "other reportable income" and Enter
Select Jump to other reportable income
Next screen, Other Wages Received, select No to continue
Next screen, scroll down all the way to the bottom, under Other reportable income, select Start
Next screen, Any Other Taxable Income? select Yes to continue
Follow prompts.

This amount will show on line 8 of Schedule 1 and Form 1040. Although it's reported on a 1099-NEC, as long as it is reported under Other Income, it is in compliance with the IRS' rules.

@Laurennk22

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

soup318 — Mon, 31 May 2021 22:43:38 GMT

So if I participate in a clinical research study say once a month and they pay me 2000 dollars for time and travel, would that affect my unemployment benefits and is it considered "earned income"?