Form 1099-MISC

This page includes the following information:
- How to add Form 1099-MISC
- Entering a Form 1099-MISC.
- How to include this income to appropriate Schedule or Form 1040, Line 21 as Other Income.
- Troubleshooting Common Errors.
-  System Limitations.

Adding Form 1099-MISC


There are two ways to add Form 1099-MISC to the return:

Option A: Select "Edit Return" on the Summary Page.

    

 Scroll through the list of supported Forms and Schedules and select Form 1099-MISC.

                                             

                                             Then click "Add Forms".

Option B: Add Form 1099-MISC from the Income list.


Select "Income" from your list. This will expand your Forms and Schedules included in your return.
Select "Add Income Form" to display all supported income forms available.

             

Select Form 1099-MISC Input Page.


Entering Form 1099-MISC:

    
First enter the Payer Federal Identification Number (EIN) of the Form 1099-R. Then select Save and Continue.

    


Next, enter the Payer Address. 

IMPORTANT: Foreign Payer Address: 
If Payer has a Foreign Address, you can not use Form 1099-MISC, 
the income from Form 1099-MISC will go directly into the applicable Schedule, or
Additional Income Including  Social Security Benefit Page for Form 1040, line 21 "Other Income".



Form 1099-MISC Input Page:


Enter the information to match the Form 1099-MISC.

Changes to the Payer Information and Recipient's Information can be made within the Form on screen.

   
   

Form 1099-MISC Income will go into the following:

- Schedule C: Non-employee Compensation, Fishing Boat Proceeds, Direct Sales.
- Schedule E: Rents, Royalties.
- Schedule F: Farming Income, Crop Insurance Proceeds.
- Form 1040, Line 21: Other Income

After entering Form 1099-MISC, you must add  the Schedule C, Schedule E, or Schedule F to your return. 

Form 1040, Line 21 Other Income is selected within the Form 1099-MISC input page.


Select how the system should treat this income:

Do not select any of the options on this page when this Form 1099-MISC income belongs in either Schedule C, E , or F. This income will not be available within these Schedules if any of these have been selected. 

IMPORTANT: After you have finished entering the Form 1099-MISC(s), you must add the applicable Schedule to the return.  

Check the box when Real Estate Income belongs in the Schedule C as self-employment income.  


Form 1040 Other Income must be selected for the system to not calculate self employment tax on the income.   

Caution: Form 1099-Misc’s that are entered and are not assigned will be considered as Other Income (Form 1040, line 21) and Subject to Self-Employment Tax


Troubleshooting System Errors:


  • Issue: Form 1099-MISC with Employer Foreign Address. 
  • Solution:  Enter the amount from Form 1099-MISC directly into the appropriate Schedule or into the Additional Income Including Social Security Benefits Page for Other Income (Form 1040, line 21).
  • Issue: Self Employment Taxes are being taken from Line 21 "Other Income:.
  • Solution: Return to the applicable Form 1099-MISC Input Page entered and select "Form 1040 Other Income" from the "Other Income" Section. 



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