What is a Form 1099-MISC?
A 1099-MISC can be used to show a variety of different types of income. Based on what box the entry is in and what the income is for, you will report the income differently on you tax return. For a list of what each box’s entry is for and how to report it, click here. The 2 most common entries on Form 1099-MISC are Box 3, Other Income and Box 7, Nonemployee Compensation. Box 3 entries are generally just included on line 21 of your return as Other Income. However, for Box 7 amounts you generally have to fill out a Schedule C and treat the income as if you earned it from operating your own business. For more infomration on Box 7 entries, click here.To view a sample Form 1099-MISC, click here.
