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.
  • Enter box 3 as usual and also enter a 1040 line 21 as a negative amount manually as Other Compensation > Prisoner income. [TSQuestion] Will there be a valid entry added for this?

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 and it will be added as Miscellaneous Income on Form 1040 – Line 21.