1099-MISC Research Study

Forum|Forum|2 years ago
March 28, 2024
1 reply
8 views

Hello. I participated in a medical research study and received a 1099-MISC Box 3. It is over $1k. I have never participated in a study before and do not do this for regular income. I answered the questions accordingly. The amount I received is appearing on 1040 Schedule 1, Line 8z. and impacted my taxes at my ordinary tax rate. Is that correct? For some reason I was thinking it would be taxed at 15%.

(As a side note, at the end of entering this, it said something like--good news, we can look at business deductions later).

TurboTax Home & Biz Windows

CatinaT1

Level 15

Reporting it on Schedule 1, 8z is accurate. This is other income not subject to self-employment.

It sounds like you followed the correct way to enter it:

Income from a health study is 'Other Income' and is not subject to self-employment. The amount will be in box 3 of your 1099-Misc.

Take the following steps: 

Sign in to TurboTax Online, click  Continue your return, then pick up where I left off (if you are using TurboTax CD/ Download, then just open your return on your computer);
Click on Federal Taxes at the top of the screen;
Scroll down the page to the last section titled: 1099-Misc and Other Common Income;
Select start or update next to the topic titled Income from Form 1099-Misc;
Answer Yes, to the questions Did you get a 1099-Misc?;
Enter the information from your 1099-Misc;
Enter Medical Study for a reason for the 1099-Misc;
For uncommon situations, select [Name] was in a research study and this was the payment;
You will then be asked if you perform a service to earn the money, say No.
If you entered this any other way, make sure to delete the other entries.

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Help241Author

Level 2

Thank you for your response. I believe I have entered everything as you have described. Can you tell me if it is correct that it is calculating taxes at my overall tax rate and not 15%?

DaveF1006

Level 15

It is difficult to determine this without knowing the specifics of your return. You can easily check this out since you have the Home and Business Version of Turbo Tax.

Go to the Forms Mode of your Program
Find your 1040, then select it.
Go to lines 15 and 16 on your 1040
Divide Line 16 by line 15. This will indicate your tax rate based on your reportable income and should answer your question.

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