Form 1099-MISC Publication 4012 D-30 and D-31

Include Every Form 1099-MISC in TaxSlayer Add a Form 1099-MISC in TaxSlayer for each 1099-MISC form received by the taxpayer Enter the amount in the TaxSlayer line for each form that directs the income to the correct Schedule or line even if not the box on the paper Form 1099-MISC May require to report income on a different line for TaxSlayer IRS SPEC guidance varies from the tradition practice to “Key What You See”. NTTC Training - TY2016

Review Form 1099-MISC with Taxpayer With probing questions determine the source of the income Royalties, e.g. oil, gas, writers, singers, etc. Non-Employee Compensation Other Income, e.g. jury duty, poll worker, medical study, prizes, gambling, etc. Medicaid Waiver Income (Box 6) NTTC Training - TY2016

Box 2 – Royalty Examples Examples of Income Direct to: Royalties for oil and gas – enter as Royalties Box 2 Schedule E Royalties that are a result of self-employment, e.g., writers, singers, etc. – enter as Nonemployee compensation Box 7 Schedule C NTTC Training - TY2016

Box 3 – Other Income Examples Examples of Income Direct to: Other Income that isn’t reported elsewhere such as prizes or awards – enter as Other income Box 3 Line 21 Other Income that is misreported self-employment income – enter as Nonemployee compensation Box 7 Schedule C NTTC Training - TY2016

Box 6 – Medical and Health Care Payments Example Example of Income Direct to: Medicaid Waiver Payment – enter as Other income* Box 3 Line 21 Other Box 6 Income out of scope * Also add offsetting entry on Line 21 to subtract income NTTC Training - TY2016

Box 7 – Non-Employee Compensation Examples Examples of Income Direct to: Non-Employee Compensation that is not really a business such as an honorarium for a speech where there is no continuing relationship and no expectation of ever doing it again. Box 3 Line 21 Non-Employee Compensation that is normally a business Box 7 Schedule C NTTC Training - TY2016

TaxSlayer Input Enter the income amount into the proper line for each form Based upon the input, TaxSlayer directs the income to the correct Schedule or 1040 line The box on the paper Form 1099-MISC may be different than the TaxSlayer line. NTTC Training - TY2016

Form 1099-MISC Scope Form 1099-MISC is in scope except for: Box 5 Fishing boat proceeds Box 6 Medical and Health Care Payments Boxes 8-15 Box FATCA filing requirement See AARP Tax-Aide Scope Manual for further guidance limitations on Schedule E NTTC Training - TY2016

TaxSlayer Input Load Form 1099-MISC -OR- TaxSlayer > Enter Myself > Income > Form 1099-MISC NTTC Training - TY2016

TaxSlayer Form 1099-MISC See Pub 4012 D-30 Continued …. NTTC Training - TY2016

TaxSlayer Form 1099-MISC (… Continued) Schedule E Box 1 Schedule E Box 2 F1040 Line 21 Box 3 Out of Scope Medicaid Waiver Income ->Box 3 Out of Scope Schedule C Box 7 Out of Scope Remainder of Form 1099-MISC is Out of Scope NTTC Training - TY2016

Summary of TaxSlayer 1099-MISC Every Form 1099-MISC must be entered in the taxpayer’s return Probing interview is used to properly classify income on the Form 1099-MISC May have to report income on a different line than the paper Form 1099-MISC NTTC Training - TY2016

Form 1099-MISC Comments? Questions? NTTC Training - TY2016