Form 1099-MISC, Miscellaneous Income
What is Form 1099-MISC?
Most people get a Form 1099-MISC in the mail when they do contract or freelance work and make over $600. The 1099-MISC also reports miscellaneous income that you might get from other things, like prize or award money, rent payments, and more.
As its name implies, this form is used to report miscellaneous income – that is, income that doesn't "belong" on a different form, like employee wages on a W-2 or interest earnings on a 1099-INT. Form 1099-MISC is often used to report income for work you performed outside of employment, or as the IRS calls it, self-employment income.
Although form 1099-MISC can be used for any kind of miscellaneous income, it is typically used to report these types of income:
- Payments of $600 or more for services performed by persons not treated as an employee (a non-employee, independent contractor, freelancer, or the self-employed).
- Prizes or awards ($600 or more)
- Rent payments
- Royalty payments ($10 or more)
- State and federal tax withheld for any of the activities reportable on the form.
- Substitute dividend and tax-exempt interest reportable by brokers ($10 or more).
- Payments to a physician, physicians' corporation or other supplier of health and medical services, issued mainly by medical assistance programs or health and accident insurance plans ($600 or more).
- Payments to fishing boat crew members coming from sale of catch.
- Crop insurance proceeds.
Note: It's important to remember that you still need to report all of your income even if you did not receive a 1099-MISC.
In TurboTax Deluxe, Premier, or Home and Business, jump directly to the Form 1099-MISC entry screen:
- Enter 1099-misc in the TurboTax search box (with or without the dash) and press the Enter key.
- You'll jump to the Did you get a 1099-MISC? screen, click Yes.
- On the Let's enter the info from your 1099-MISC screen, copy the information from your form into TurboTax.
- Then click Continue and finish by describing your income in the following interview screens.
Remember, all income should be included on your tax return. When you get a form, such as Form 1099-MISC, the IRS also gets a copy to match with your tax return.
Depending on your miscellaneous income and any related expenses, you may need to upgrade to a TurboTax edition with the Schedule C form and coaching you need.
TurboTax Deluxe and Premier editions support 1099-MISC income with limited expenses:
- Standard vehicle mileage,
- Phone expenses, and
- Miscellaneous expenses up to $100.
TurboTax Home and Business edition supports additional expenses beyond those listed, and is designed for small businesses including sole proprietors, consultants, and the self-employed using a Schedule C with both income and expenses.
After entering your first 1099-MISC, you have the option of adding additional forms.
Click Yes to start a new Form 1099-MISC, or on the 1099-MISC Summary screen, you can click the Add Another 1099-MISC button.