To enter or review the information from Form 1099-MISC, Box 15b Section 409A Income:
- 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.
- Click Form 1099-MISC
- Click Add to create a new Form 1099-MISC
- Click Form 1099-MISC Quick Entry to open the Quick Entry window
- Enter all of the applicable information from your Form 1099-MISC
- Close the Quick Entry window
- On the screen titled What type of income was reported on this Form 1099-MISC?, make the appropriate selection
- If you selected Other non-business income on the previous screen, check the box to confirm that the income is non-business income and is not subject to self-employment taxes
- Continue to the screen titled Assign your Forms 1099-MISC, and then assign the Form 1099-MISC you just entered to either Schedule C or Form 1040/Form1040NR, Other Income from the Assigned form or schedule drop-down list
There is a 20% tax on the amount you enter from IRS Form 1099-MISC, Box 15b Section 409A income. This amount will be included in the total of Line 62.
Note: Line 62 of Form 1040 may have items included from Other Taxes. When the form is printed, the total amount of Other Taxes will print to the left, and the text printed to the left of that amount will define the type of tax.
According to the IRS Instructions for Form 1040,you should include in the total on Line 62 any additional tax on income you received from a nonqualified deferred compensation plan that fails to meet certain requirements. This income should be shown in Box 12 of Form W-2 with Code Z or in Box 15b of Form 1099-MISC. The tax is 20% of the amount required to be included in income plus an interest amount determined under section 409A(a)(1)(B)(ii). See section 409A(a)(1)(B) for details. Identify as "NQDC". On the dotted line next to Line 62, enter the amount of the tax and identify it as indicated.
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.
Use the following instructions to view the Other Taxes - Supporting Details worksheet for Form 1040, Line 62.
TaxAct Online Users:
- Click the My Return button in the top right corner
- Click Print Center, then click the Custom tab
- Scroll down in the bottom section (the bottom section lists documents received or worksheets) and click on the checkbox(es) to the left of the item(s) Form 1040 Other Taxes - Other Taxes Worksheet
- Click the Print button and then click the PDF link.
- The item will appear in a PDF read-only format. At that time you can click the printer icon on the screen to actually print, or close the window without printing.
TaxAct Desktop Users:
- Click Forms in the menu bar
- Expand the Federal view and then the Worksheets view
- Select Form 1040 Other Taxes - Other Taxes Worksheet from the list
Please note that any links in the information above update each year automatically and will take you to the most recent IRS version of the publication at the time it is accessed.