Question

Form 1099-MISC - Red Alert

Accepted Answer

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 (Form 1040), Profit or Loss From Business (Sole Proprietorship),
For those that own rental and royalty property - Schedule E (Form 1040) Supplemental Income and Loss, or
Other types of income not subject to self-employment taxes - The other income worksheet for Form 1040 U.S. Individual Income Tax Return or Form 1040-NR U.S. Nonresident Alien Income Tax Return.

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 the directions to delete Form 1099-MISC from your return.

Form 1099-MISC assignment worksheet

Online Navigation Instructions

From within your TaxAct return (Online), click Tools down the left to expand, then click Forms Assistant.
Click to expand the FEDERAL Forms folder, click to expand the Documents Received folder, then click Form 1099-MISC - Miscellaneous Income.
Click Edit or Add to go to the screen titled Let's start on your 1099-MISC, or click Edit on a form already created, then continue to the screen titled 1099-MISC: Enter information on form.
Click Switch to Form Entry (optional) near the top to open a Quick Entry window, click the space beneath This Form 1099-MISC is assigned to the following schedule or form: to make a drop-down appear, select the correct schedule or form, then click Save & Close.

Desktop Navigation Instructions

From Forms view, expand the Federal Documents Received folder.
Open the 1099-MISC - Miscellaneous Income folder.
Make the appropriate selection for every Form 1099-MISC that is present on the worksheet from the Assigned Form or Schedule drop-down.

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.