, Answering FAQ'sTurboTax Employee
There are a number of reasons you may have received a Form 1099-MISC.
The most common reason is because you were paid for work you performed as a non-employee.
When employees get paid, they receive a W-2 at year's end. Non-employees, also known as contractors, receive a 1099-MISC instead.
Just like a W-2, the 1099-MISC reports your income to the IRS and needs to be entered on your return.
Other income reported on 1099-MISC
In addition to non-employee income, Form 1099-MISC is used to report other types of income, such as:
- Prizes or awards;
- Rent or royalty payments;
- State and federal tax withheld in conjunction with any of the other activities reportable on the form;
- Substitute dividend and tax-exempt interest reportable by brokers;
- 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;
- Payments to fishing boat crew members coming from sale of catch;
- Crop insurance proceeds.
The income on a 1099-MISC should always be reported. Where you enter it in TurboTax will depend upon what it's for. TurboTax will guide you to the correct place for entering each type of income.
- Form 1099-MISC, Miscellaneous Income
- How do I enter more than one 1099-MISC form?
- What is Nonemployee Compensation Income (Box 7 on my 1099-MISC)?
- Do I need any other information before entering my 1099-MISC?