Form 1099-MISC - Medical and Health Care Payments

If you receive a Form 1099-MISC with an entry in Box 6 for medical and health care payments, you need to report it in the TaxAct program and have the TaxAct program transfer the information to Schedule C.  You need to create a Schedule C before you report Form 1099-MISC and assign it to Schedule C.  If you need help creating Schedule C in the TaxAct program, go to our Schedule C - Entering Sole Proprietorship in Program FAQ.

Report your Form 1099-MISC and enter the Box 6 amount (if you need help reporting Form 1099-MISC in the TaxAct program, go to our Form 1099-MISC - Entering in Program FAQ):

  1. From within your Form 1099-MISC, on the screen titled 1099-MISC: Enter information on form, click the data entry field below Box 6 - Medical and health care payments, and type your amount.
  2. On the screen titled What schedule or form should the income from this Form 1099-MISC be reported on?, click the dropdown below Assigned schedule or form, and click Schedule C.

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 webpage or document at the time it is accessed.