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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, follow the steps below.

If you have not already entered the applicable Schedule C information:

  1. From within your TaxAct return (Online or Desktop), click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then click Federal
  2. Click Business Income to expand the category and then click Business income or loss from a sole proprietorship
  3. Click Add to create a new copy of the form or Review to review a form already created
  4. Continue with the interview process to enter all of your applicable business information
  5. When you reach the screen titled Business Income - Income, click Yes
  6. Click Yes to indicate that you received a Form 1099-MISC
  7. Click Add to create a new Form 1099-MISC
  8. Click Form 1099-MISC Quick Entry to open the Quick Entry window
  9. Enter all of the applicable information from your Form 1099-MISC
  10. Close the Quick Entry window
  11. Click Continue twice
  12. Assign the Form 1099-MISC that you just entered to the Schedule C that you are currently completing from the Assigned form or schedule drop-down list

If you have already entered the applicable Schedule C information:

  1. From within your TaxAct return (Online or Desktop) click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then click Federal
  2. Click Form 1099-MISC
  3. Click Add to create a new Form 1099-MISC
  4. Click Form 1099-MISC Quick Entry to open the Quick Entry window
  5. Enter all of the applicable information from your Form 1099-MISC
  6. Close the Quick Entry window
  7. Click Continue
  8. Assign the Form 1099-MISC that you just entered to the applicable Schedule C from the Assigned form or schedule drop-down list

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 334Tax 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.

Note: Any links above are updated each year automatically and will take you to the most recent IRS version of the publication at the time it is accessed.


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