Form 1099-MISC

Form 1099-MISC


Tax Slayer entry:

Federal Section > Income > Form 1099-MISC

  • Data entry varies depending on income source.
  • If this 1099-MISC is for a Medicaid Waiver Payment see the instructions for box 3.

Box 1:

  • After entering the data, you will be prompted to add to a Schedule E. Select that option.
  • Only land rental, with no depreciation or expenses is in scope. All other rental is  OUT OF SCOPE  unless certified for Military.

Box 2:

  • After entering the data, you will be prompted to add to a Schedule E. Select that option.
  • Only small oil and gas royalties are in scope. All other royalties are  OUT OF SCOPE .
  • If from Oil or Gas, choose the Expenses menu and enter 15% of the royalty amount as “Depletion Allowance” under the Additional Expenses category.

Box 3:

Medicaid Waiver Payment

  • If this 1099-MISC is for a Medicaid Waiver Payment, all or part may be tax exempt. The person receiving the payment must live with the person receiving the care.
  • ☣ SOFTWARE ERROR TaxSlayer cannot properly handle this case as a 1099-MISC.
    • Enter as Federal Section > Income > Other Income > Other income not reported elsewhere.  Enter Notice 2014-7 in the description field and $0 (or taxable amount of the payment) in the amount field.
    • If  you are in the business of providing home care services, enter the full amount of payments under Gross Receipts in the Schedule C Income section. In Other Expenses, enter Notice 2014-7 as the description and the amount as a positive number.

Box 7:

  • After entering the data, you will be prompted to add to a Schedule C. Select that option if it is from a business you operated or a profession you practiced as a sole proprietor. An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity.
  • A sporadic activity or a hobby does not qualify as a business. To report income from a nonbusiness activity, do not select the Schedule C option.
  • ⚠ CAUTION :If you don’t choose Schedule C, the amount does not go to the 1040 line 21 nor anywhere else! Add it manually to the Other Income > Other Inc. Not Reported Elsewhere TS page (1040 line 21) described as from 1099-MISC.