TurboTax FAQ
TurboTax FAQ
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Why did I get a 1099-MISC, and do I need to report it?

There are a number of reasons for receiving a Form 1099-MISC. The most common 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. Instead, non-employees receive a 1099-MISC. The IRS also refers to non-employees as independent contractors or self-employed.

The 1099-MISC also reports miscellaneous income that you might get from other things, like prize or award money, rent payments, and more

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:

  • Payments of $600 or more for services performed for a trade or business by people not treated as its employees (such as subcontractors).
  • Prizes or awards;
  • Rent payments
  • Royalty payments;
  • substitute dividend and tax-exempt interest reportable by brokers ($10 or more;
  • State and federal tax withheld in conjunction with any of the other activities reportable on the form;
  • 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 depends upon what it's for. TurboTax guides you to the correct place for entering each type of income.

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