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).
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:
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%?
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.
Thank you. That is a lower rate than I'm seeing my research 1099-MISC calculate at. I'm seeing my overall tax rate. Is there anyplace else--any particular form or line number-- I should look to see if it may be calculating this research study payment at a higher rate than it should be? I really believe I entered it correctly, but it's always possible something is off.
It depends. Check line 23 if additional taxes were reported here. If so, you may have have been assessed a self-employment tax.