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If it was miscellaneous income as a subcontractor or babysitter, etc., link from line 21 of page 1 of Form 1040 to a New 1099MISC. If it is income that needs to be reported on Schedule E, link from line 3 for Rents or line 4 for Royalties on Schedule E. Complete this form exactly as it is on the form that you received from the payer.
Note: If this is considered non-employee compensation, it should probably be reported as earnings from self-employment on Schedule C. If this is not done correctly, the IRS will send a letter to the taxpayer asking for proof that this should not be self-employment income. Check with the taxpayer to see what type of income the form is reporting, and see the Schedule C or Schedule SE instructions to find where this should be reported. There should also be information on the back of Form 1099-MISC to help you with this conclusion. If you are still in doubt, check with the payer or with the IRS.
Tags: federal,form
Reporting Form 1099-MISC income
If the 1099-MISC reflects income for someone who is self-employed, you would link (press F9) from line 1 of the Federal Schedule C to a New 1099MISC.
If it was miscellaneous income as a subcontractor or babysitter, etc., link from line 21 of page 1 of Form 1040 to a New 1099MISC. If it is income that needs to be reported on Schedule E, link from line 3 for Rents or line 4 for Royalties on Schedule E. Complete this form exactly as it is on the form that you received from the payer.
Note: If this is considered non-employee compensation, it should probably be reported as earnings from self-employment on Schedule C. If this is not done correctly, the IRS will send a letter to the taxpayer asking for proof that this should not be self-employment income. Check with the taxpayer to see what type of income the form is reporting, and see the Schedule C or Schedule SE instructions to find where this should be reported. There should also be information on the back of Form 1099-MISC to help you with this conclusion. If you are still in doubt, check with the payer or with the IRS.
Tags: federal,form