1099-Misc What, When, and Where

Diving into the tax season brings an avalanche of tax forms that you need and receive to prepare your tax returns.   You have the W-2s, 1099s, 1098s, etc… — numerous other forms.  You think some forms would be easily to read and understand where the information contain on them goes on the tax return.  However, if you are preparing your tax return yourself, sometimes you have to get the instructions out to determine where the information on the form goes.

W-2s are easy.  The information goes on line 1.  However for 1099s, where the information goes is not so easy.  The information reported on the 1099s determines where the information goes.  There are several types of 1099s.  You have the 1099-Misc, 1099-SA, 1099-R, 1099-G, 1099-B, 1099-Int, 1099-Div, 1099-OID, 1099-T, 1099-C to name a few of the fifteen type of Form 1099s I counted on the website at 1.usa.gov/XOYLPb.  (Note- I shortened the link since it took up two lines of todays.)  Except for the 1099-Misc, the other 1099s are specific to a particular type of income and is reported on a particular form or line located on the tax return.   However not true with the Form 1099-Misc. It contains several lines of information that goes on different parts of the return.  It contains income related to miscellaneous rent, fishing, non-employee income, legal, excess golden parachute, crop insurance proceeds, payments in lieu of dividends and interest, payments of consumer products over $5,000, royalties, and healthcare and medical payments.

Depending on the type of miscellaneous income reported on the 1099-Misc, the forms needed can range from the 1040, Schedule E, Schedule C, Schedule F.    Knowing where the income is reported on the 1040 is very important.  While there is a line on page 1 of the 1040 called Other Income, this is not where the information from the 1099-Misc goes.  Going to the IRS website and downloading the instructions will help you determine where your information on the 1099 goes if you are preparing your tax return this year.

When it comes to the tax preparation forms, the 1099-Misc form has to be confusing when you prepare your tax return.  As a tax preparer, I have seen some people put the 1099-Misc is some unusual locations on the tax return.  Have you?  When it comes to the 1099-Misc form, it is best to the IRS website and look up the information to help you put the information on the form correctly.  Now you don’t have to say “What do I do with this  1099-Misc Form information” isntead of what is this and where does goes . Leave your comments below about your 1099-Misc Experience

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