received 1099-misc for value of $600 in box 3. This was for a healthcare reimbursement, not an intent to make money. Why is it being taxed?

jaydel04 — Tue, 03 Feb 2026 21:28:27 GMT

Re: received 1099-misc for value of $600 in box 3. This was for a healthcare reimbursement, not a...

ReneV4 — Tue, 03 Feb 2026 21:40:25 GMT

Generally, healthcare reimbursements are not taxable, so although you will still need to report this 1099-Misc, you can also include an offsetting entry on your return.

To include an entry for this 1099-Misc that was due to a healthcare reimbursement, do the following:

Go to Wages & Income, select Add more income and scroll down to Other Common Income
Click the down arrow and select Form 1099-Misc, click Start or Revisit
Enter your 1099-Misc exactly as it appears on the original Form 1099, click Continue
In the "Describe the reason for this 1099-Misc", write a description in the box (Remember the description for later)
Select "None of these apply" on the next screen and click Continue
Answer the additional questions and click Continue

For the offsetting entry, when back at the "What you have so far" screen, click Add more income

Scroll down, but this time, go to Less Common Income
Click the down arrow to the right and click Add to the right of Miscellaneous Income, 1099-A, 1099-C
Scroll down to the bottom and select Start to the right of Other reportable income
Click Yes when you reach, Any other taxable income?
Click Add and here you will enter the description you wrote above, along with a negative (-600), Continue

The above steps will report the 1099-Misc, as required, but will also reverse the amount, since it was only a healthcare reimbursement.

topic received 1099-misc for value of $600 in box 3. This was for a healthcare reimbursement, not an intent to make money. Why is it being taxed? in Self employed

received 1099-misc for value of $600 in box 3. This was for a healthcare reimbursement, not an intent to make money. Why is it being taxed?

Re: received 1099-misc for value of $600 in box 3. This was for a healthcare reimbursement, not a...