Research money

Forum|Forum|3 years ago
November 17, 2022
1 reply
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If you participate in a research study and get paid money, is that money taxable?

mtufaro

Level 7

The IRS requires research institutions to report compensation to clinical trial participants if the amount is $600 or more a year, though all income for participating in a clinical trial or medical study is taxable. If the activity is infrequent, the income would not be self-employment 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.

LWEMEAuthor

Level 3

Thank you.

We ended up calling the research company when we were ready to file and they said it wasn't taxable if it was like under $1000. It was about $250. So we didn't include it. We want to be honest, so would we need to make a whole amended return or could we just claim it the next year, or what would be the most honest thing to do?

Thank you so much. The Q and A has been super. Do you do these often?

VolvoGirl

Level 15

You would have to amend that tax return to add the income. Even through the special event won't be going on you can always post in this forum and get help all year.