1099-Misc, medical and health care payments

[DawnC0 · Accepted solution]

If you have income in Box 6, for medical and health payments, follow these instructions to enter into TurboTax: 

Sign in and click Take Me To My Return if not already signed in to your return. 

• Federal (left side menu) >>
• Wages & Income (top menu) >>
• I'll choose what I work on OR Show all Income types >>
• Self-Employment >>
• Answer YES to the 'Did you have self-employment income and expenses?' question >>
• Continue through the business set-up screens/interview >>  
• Click on 'Looks Good' after reviewing your general business information (make edits if needed) >>
• Choose 1099-MISC when you get to the income entry >>
• Under box 7, you may need to put a checkmark in the box that says 'My form has other info in boxes 1-18' in order to view the entire form.  See image below. 

****You can also enter the amount in Box 7 instead of Box 6, as TurboTax and the IRS treat Box 6 and Box 7 income the same (self-employment).  The entry process is the same as the above instructions.

The only reason its not in Box 7 is because of the line of work you are in. The IRS just requires medically-related income to go in that box. Per their own instruction, the income goes on Schedule C.  Medical payments can be reported in Box 6 or 7 on your tax return since the result will be the same. 

[Updated for new TurboTax version on 02/08/18]

[hullian]

In the past my client has listed the medical and health care services I provide in the nonemployee compensation box. For 2020, for whatever reason, they put it in the Medical and Health care payments box. When I moved the amount from nonemployee compensation to Medical and Health care payments, my refund shot up like a rocket! When I looked at the Schedule C, it had not counted all of that income as taxable!!!!!  This is WRONG!  What is going on??????

[MaryK4]

If you added the 1099-MISC Medical Payments but have not completed the Schedule C business section, the refund will be higher because TurboTax does not have all of the calculations.  After you enter all the business information, the refund will be more accurate.  

@hullian