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New Member
posted Jan 31, 2025 9:21:39 PM

I'm self-employed & received a 1099-misc for $ I received for a piece of equipment that was damaged. Is this taxable income?

I have to report on Line 21 as Other Income but wondering if it's actually taxable income, as it's not earned income.

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1 Replies
Expert Alumni
Feb 1, 2025 8:29:54 AM

Yes, $1 is taxable income. However, you typically won't receive a Form 1099-MISC for just $1. These forms are required only if you earn $10 or more in royalties or $600 or more in other types of income.

 

If the damaged equipment was for your business, you maybe able to claim a loss when you dispose of it. This doesn't apply to personal items.