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jrbarendt
New Member

How to enter 1099-MISC for Rare Disease Clinical Trial ( software version Turbotax Premier)?

 
1 Best answer

Accepted Solutions
TeresaM
Expert Alumni

How to enter 1099-MISC for Rare Disease Clinical Trial ( software version Turbotax Premier)?

Income for participating in a clinical trial or medical study is taxable.  If the activity is infrequent, the income will not be self-employment income. 

This means is that it is subject to income taxes, but not subject to self-employment tax.  It also will not qualify toward the earned income tax credit or any other tax benefit that is dependent on earned income.

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.


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3 Replies
TeresaM
Expert Alumni

How to enter 1099-MISC for Rare Disease Clinical Trial ( software version Turbotax Premier)?

Income for participating in a clinical trial or medical study is taxable.  If the activity is infrequent, the income will not be self-employment income. 

This means is that it is subject to income taxes, but not subject to self-employment tax.  It also will not qualify toward the earned income tax credit or any other tax benefit that is dependent on earned income.

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.


mommyjpg
New Member

How to enter 1099-MISC for Rare Disease Clinical Trial ( software version Turbotax Premier)?

What if the person receiving the income for the trial is 15 years old and a dependent of the parents' tax return?  Can the 1099-misc be added to the parents' return or do they need to file their own?

DMarkM1
Expert Alumni

How to enter 1099-MISC for Rare Disease Clinical Trial ( software version Turbotax Premier)?

The income would need to be reported on the child's tax return.  See this link for helpful instructions.  Be sure the child selects the box "Can be claimed as a dependent on some else's return." 

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