Form 1099-MISC - Other Income

If you need help reporting Form 1099-MISC in the TaxAct program, go to our Form 1099-MISC - Entering in Program FAQ.

Generally, report this amount from Form 1099-MISC Miscellaneous Income, Box 3 on the Other Income line of Schedule 1 (Form 1040) Additional Income and Adjustments to Income, Line 8. The amount reported in Box 3 may be payments received as the beneficiary of a deceased employee, prizes, awards, taxable damages, Indian gaming profits, or other taxable income.

Examples of Other Income which are not subject to self-employment tax are taxable distributions from an ESA or HSA, jury duty pay, and other taxable income from an activity not engaged in for profit. For more examples, please refer to IRS Instructions for Form 1040 and 1040-SR.

Conversely, if the income is from a trade or business, report the amount on Schedule C (Form 1040) Profit or Loss From Business (or Schedule F (Form 1040) Profit or Loss From Farming if the income relates to farming). The net profit calculated on Schedule C transfers to Schedule 1 (Form 1040), Line 3 and to Schedule SE (Form 1040) Self-Employment Tax for purposes of calculating self-employment (SE) taxes. The SE tax is reported on Schedule 2 (Form 1040) Additional Taxes, Line 4. You can also deduct one-half of your self-employment tax when figuring adjusted gross income.

This deduction is made automatically in the TaxAct® program on Schedule 1 (Form 1040), Line 15. Generally, the payer of the miscellaneous income does not withhold income tax or Social Security and Medicare taxes from the miscellaneous income. IRS Publication 334 Tax Guide for Small Business, has additional information regarding self-employment tax - what it is, who pays it, how it's calculated and reported, etc.

If you need help reporting Form 1099-MISC federal and/or state tax withholding in the TaxAct program, go to our Form 1099-MISC - Federal or State Withholding FAQ. This will transfer the federal/state withholding to the appropriate line(s) of the returns. The actual Form 1099-MISC is not e-filed with the return, only the information that it contains. As instructed below, only the withholding entries are completed for the form and no amount would actually be entered for Box 3. If you have multiple amounts to enter you would combine them into one entry (one entry for the federal withheld amounts and one for the state withheld amounts).

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