Support CenterHow do I report a Form 1099-MISC with an amount in Box 3? How do I report expenses associated with research? - Customer has a 1099 MISC and wants to know where to enter the expenses for a project that was done using the 1099MISC Income.Can You Deduct Expenses From Other Income?
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How to Report 1099-MISC Box 3 Income
Incentive payments and other types of income that appear in box 3 are reported on line 8 of Schedule 1 with the 2019 Form 1040. You would then enter the total amount of other income as calculated on Schedule 1 on line 8a of Form 1040.
This is not the same 1040 that you used when you filed your 2018 tax return in 2019. There was no Schedule 1 for tax years 2017 and earlier, and the Form 1040 and Schedule 1 have additionally changed since the 2018 tax year.
Entering the total on line 8a separates it from any wages or salary you earned, which are entered on line 1, and from self-employment earnings that are calculated on Schedule C then also reported on Schedule 1. This tells the IRS that this money isn't subject to self-employment tax, Social Security, or Medicare because it wasn't salary, wages, or self-employment income.
Can You Deduct Expenses From Other Income?
Unfortunately, you cant deduct work-related expenses from the total of your other income. You used to be able to claim work-related expenses through 2017 if you itemized your deductions, but these expenses were among the miscellaneous deductions that were eliminated by the Tax Cuts and Jobs Act effective 2018 through 2025.
Self-employed individualsthose with earnings reported in box 7 of the 1099-MISCcan still deduct their costs of doing business on Schedule Cbut then they have to pay the self-employment tax on the balance.
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