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Per the IRS Instructions for Form 1099-MISC, an entry in Box 6 for medical and health care payments is reported as income on Schedule C Profit or Loss from Business.

To enter or review the information for Form 1099-MISC, Box 6 Medical and Health Care Payments.

  1. From within your TaxAct return (Online or Desktop), click on the Federal tab.  On smaller devices, click in the upper left-hand corner, then select Federal
  2. Click Form 1099-MISC to expand the category and then click 6 - Medical and health care payments
  3. The program will proceed with the interview questions for you to enter the information for your business
  4. On the screen to enter your business income, select Yes
  5. On the screen Business Income - Form 1099-MISC, click Yes
  6. Proceed with the interview questions and enter on the screen, Form 1099-MISC - Amounts, the box 6 - Medical and health care payments.

The net profit calculated on Schedule C transfers to Form 1040, Line 12, and to Schedule SE for purposes of calculating self-employment (SE) taxes. The SE tax is reported on Form 1040, Line 56. 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 Form 1040, Line 27. 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 also have federal and/or state tax withholding reported in Box 4 or 16, see Form 1099-MISC - Box 4 or Box 16.

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