Form 1099-MISC - Entering Federal or State Withholding in Program

To enter federal or state withholding amounts when there is not an applicable section in the Q&A interview, use Form 1099-MISC for Box 3. This will transfer the federal/state withholding to the appropriate lines of the returns. The actual Form 1099-MISC is not electronically filed with the return; only the information that it contains is electronically filed. As instructed below, only the withholding entries are completed for the form, and no amount would actually be entered for Box 3.

Some examples of forms where this may be necessary are Forms 1099-PATR, Forms 1099-K, and Forms 1099-G for Taxable Grants and lottery winnings not reported on Form W-2G.

  1. From within your TaxAct® return (Online or Desktop) click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Form 1099-MISC in the Federal Quick Q&A Topics menu
  3. Click +Add Form 1099-MISC 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, including information for Boxes 4 and/or 16
  6. Close the Quick Entry window
  7. On the screen titled What schedule or form should the income from this Form 1099-MISC be reported on?, make the appropriate selection from the Assigned schedule or form drop down list
  8. 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

Note. If you have multiple amounts to enter you would combine them into one entry (one entry for the federal withheld amounts and one for the state withheld amounts).