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

[TeresaM · Accepted solution]

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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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]

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."