TurboTax FAQ
TurboTax FAQ
458 people found this useful

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.

Related Information: