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 Miscellaneous Income 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 Form 1099-PATR Taxable Distributions Received From Cooperatives, Form 1099-K Payment Card and Third Party Network Transactions, and Form 1099-G Certain Government Payments for Taxable Grants and lottery winnings not reported on Form W-2G Certain Gambling Winnings.

To enter federal or state withholding amounts when there is not an application section in TaxAct:

  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, 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 3), then click Save & Close.
  4. Select the appropriate option to assign the Form 1099-MISC you are currently completing from the Assigned schedule or form drop-down, then click Continue.

Note. If you had selected an "Other Income" option, then on the screen titled What type of income was reported on this Form 1099-MISC?, click the appropriate button. If you select Other non-business income, then check I confirm that the income reported on this Form 1099-MISC is non-business income and is not subject to self-employment taxes 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).

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.