Per IRS Instructions for Forms 1099-MISC and 1099-NEC, an entry in Box 6 for medical and health care payments is reported as income on Schedule C (Form 1040) Profit or Loss from Business.

To enter or review the information for Form 1099-MISC, Box 6:

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

1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
2. Click Business Income in the Federal Quick Q&A Topics menu to expand, then click Business income or loss from a sole proprietorship.
3. Click + Add Schedule C to create a new copy of the form or click Edit to review a form already created.
4. Continue with the interview process to enter all of your applicable business information.
5. On the screen titled We need to know if Taxpayer/Spouse received any of these for their work in 2020, click the 1099-MISC box, then click Continue.
6. Click + Add Form 1099-MISC to create a new copy of the form, then continue until you reach the screen titled 1099-MISC: Enter information on form.
7. Click the Switch to Form Entry (optional) link near the top to open the Quick Entry window, enter all of the applicable information from your Form 1099-MISC (including Box 6), then click Save & Close.
8. Select the applicable "Schedule C" option to assign the Form 1099-MISC you are currently completing from the Assigned schedule or form drop-down, then click Continue.

If you have already entered the applicable Schedule C information:

1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
2. Click Form 1099-MISC in the Federal Quick Q&A Topics menu, click + Add Form 1099-MISC to create a new copy of the form, then continue until you reach the screen titled 1099-MISC: Enter information on form.
3. Click the Switch to Form Entry (optional) link near the top to open the Quick Entry window, enter all of the applicable information from your Form 1099-MISC (including Box 6), then click Save & Close.
4. Select the applicable "Schedule C" option to assign the Form 1099-MISC you are currently completing from the Assigned schedule or form drop-down, then click Continue.

The net profit calculated on Schedule C transfers to Schedule 1 (Form 1040) Additional Income and Adjustments to Income, 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 14.

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, see Form 1099-MISC - Federal or State Withholding.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.