Where should the income from a 1099-MISC be entered?

1099-MISC, Rents (box 1) or Royalties (box 2):

1099-MISC, Other income (box 3):
  1. Go to Screen 14.1, SS Benefits, Alimony, Miscellaneous Inc.
  2. Scroll down to the Alimony and Other Income section.
  3. Enter the amount in Other income (Ctrl+E) (code 11 (Taxpayer) code 61 (Spouse)).

The amount will flow to Form 1040, line 21. See Form 1040, Line 21- Other Income for more information.

1099-MISC, Federal Income Tax Withheld (box 4):

  1. Go to Screen 14.1, SS Benefits, Alimony, Miscellaneous Inc.
  2. Scroll down to the Tax Withheld section.
  3. Enter the amount in, Federal income tax withheld (code 14 (Taxpayer) code 64 (Spouse)).
1099-MISC, Medical and Health Care Payments (box 6):
  • Medical/health payments in Box 6 is typically for institutions (like insurance companies) to report payments to medical facilities. Payments of $600 or more made in the course of trade or business to each physician or other supplier or provider of medical or health care services will be reported in box 6. This will include payments made by medical and health care insurers under health, accident, and sickness insurance programs.  If payment is made to a corporation, the corporation will be listed as the recipient rather than the individual providing the services. Payments to persons providing health care services often include charges for injections, drugs, dentures, and similar items.  In these cases the entire payment is subject to information reporting.  Payments to pharmacies for prescription drugs are not required to be reported in box 6. 
  • The exemption from issuing Form 1099-MISC to a corporation does not apply to payments for medical or health care services provided by corporations, including professional corporations.  However payments made to tax-exempt hospitals or extended care facilities or to a hospital or extended care facility owned and operated by the United States (or its possessions), a state, the District of Columbia, or any of their political subdivisions, agencies, or instrumentalities is not required to be reported on 1099-MISC.
  • Generally, payments made under a flexible spending arrangement (as defined in section 106(c)(2)) or a health reimbursement arrangement which is treated as employer-provided coverage under an accident or health plan for purposes of section 106 are exempt from the reporting requirements of section 6041.
1099-MISC, Non employee compensation (box 7):
  • Schedule C, C-EZ, or F. But if you were not self-employed, see the instructions on Form 1099-MISC.
  • For Schedule C or C-EZ, use Screen 16, Business Income;
  • For Schedule F, use Screen 19, Farm Income (Sch F/4835);
  • If not self employed, use Screen 14.1, Miscellaneous Income, Wages received with no SS withheld (8919)(Ctrl+E).  According to the Form 1040 instructions, do not report nonemployee compensation on Form 1099-MISC on Line 21, Other Income, of Form 1040.  The amount entered is included on the wage income line of Form 1040, and used to complete Form 8919 "Uncollected Social Security and Medicare Tax on Wages". The resulting social security and Medicare tax are included in the Other Taxes section of Form 1040, page 2.

1099-MISC, Substitute payments in lieu of dividends or interest (box 8):

Per the IRS instructions,

"Box 8. Shows substitute payments in lieu of dividends or tax-exempt interest received by your broker on your behalf as a result of a loan of your securities. Report on the ?Other income? line of Form 1040.

  1. In Screen 14.1, Miscellaneous Income, click the SS Bene., Misc. Inc. link in the left navigation panel.
  2. Scroll down to the Alimony and Other Income section.
  3. Enter the amount in amount in Other income (Ctrl+E) field (input sheet code 11).
    • Note: A description can be entered to print on Form 1040, line 21.

1099-MISC, Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient) for resale (box 9):

  • This number is a reporting number for IRS purposes it does not report on the return. Form 1099-MISC Instructions, 

In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment. You must also file Form 1099-MISC for each person from whom you have withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

Be sure to report each payment in the proper box because the IRS uses this information to determine whether the recipient has properly reported the payment.

1099-MISC, Excess golden parachute payments (box 13):
  • See the instructions for Form 1040, line 61, on page 45
  • Use Screen 45.3, Schedule J, Recapture, Other Taxes; Excess Golden Parachute Payments from Form 1099-MISC. (code 91)
1099-MISC, Gross Proceeds paid to an attorney (box 14)
  • According to the 1099-MISC instructions, Shows gross proceeds paid to an attorney in connection with legal services. Report only the taxable part as income on your return.
  • The program does not have a specific entry for this item. 
1099-MISC, Section 409A income (box 15b)
  • Per Form 1099-MISC form instructions, "Box 15b. Shows income as a non-employee under a non-qualified deferred compensation plan (NQDC) that does not meet the requirements of section 409A. This amount is also included in box 7 as non-employee compensation. Any amount included in box 15a that is currently taxable is also included in this box. This income is also subject to a substantial additional tax to be reported on Form 1040. See "Total Tax" in the Form 1040 instructions."
  • Enter the amount from the 1099-MISC, box 7, on the Miscellaneous Income screen (Screen 14.1) in the Other Income (Ctrl+E) field (code 11). The income from the amount in box 15b is included in box 7. However,the additional tax must be calculated and entered on the Schedule J, Recapture, Other Taxes screen (Screen 45.3), in the Other Taxes section under the heading Section 409A Tax (codes 85, 89).
  • Lacerte will calculate the additional tax if the NQDC income was entered on the Wages screen (box 12, Code Z). Since the income was reported on a 1099-MISC, the additional tax must be calculated manually by the preparer.
1099-MISC, State tax withheld (box 16)
  1. Go to Screen 14.1, Miscellaneous Income
  2. Scroll down to the Tax Withheld section
  3. Enter the amount in, State income tax withheld (code 15). If appropriate, specify the state that withheld the tax.

    *Note- If the state withholding is for AZ, CO, CT, DC, GA, HI, IA, IL,  IN, KY, MA, ME, MT, ND, NE, NM, NY, OH, OK, PA, SC, VA, WI, or WV, an entry in this field will generate diagnostic (ref. #34522). See Individual E-file Diagnostic Form 1099-MISC is Required for States with Withholding (Ref. #34522) to resolve this diagnostic.
To enter 1099-MISC, Other (boxes 5 & 10)