Every Form 1099-MISC, Miscellaneous Income needs to be assigned to one of the following schedules or worksheets:
- For the self-employed, freelancers, and independent contractors - Schedule C, Profit or Loss From Business (Sole Proprietorship),
- For those that own rental and royalty property - Schedule E, Supplemental Income and Loss, or
- Other types of income not subject to self-employment taxes - The other income worksheet for Form 1040/1040NR.
Note. Not sure which category you fall under? Explore the Self-Employment Tax (Social Security and Medicare Taxes) page of the IRS Website.
If you have not assigned your Form 1099-MISC to one of the above options, the program will provide a red alert and you will be unable to e-file your tax return.
If you feel all Forms 1099-MISC presented on the alert screen were correctly assigned to a schedule or worksheet, but you are still receiving the alert, you should review your entries on the Form 1099-MISC assignment worksheet. This is an important step, since a Form 1099-MISC may be present on the assignment worksheet that does not show on the alert screen. Be sure to scroll all the way down to the bottom of the worksheet to make sure you see all entries (it is possible to have a few blank lines in between listed forms). To delete a Form 1099-MISC, return to the Q&A and follow these directions.
- Click Tools to expand the menu
- Click Forms Assistant
- Expand the Federal Documents Received folder
- Select the folder titled Form 1099-MISC – Miscellaneous Income
- Click Edit to open the Form 1099-MISC
- On the What schedule or form should the income from this Form 1099-MISC be reported on? screen, select the form or schedule from the Assigned Form or Schedule drop-down list
- Alternative method: On the screen that lists all the income boxes, select Switch to Form Entry (optional) and at the bottom of the Form Entry window is the Assigned Form or Schedule drop-down list
- From Forms view, expand the Federal Documents Received folder
- Open the folder titled 1099-MISC - Assignment Worksheet
- Make the appropriate selection for every Form 1099-MISC that is present on the worksheet from the Assigned Form or Schedule drop-down list