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

2. Include Every Form 1099-MISC in TaxSlayer
Add a Form 1099-MISC in TaxSlayer for each 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

3. 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)
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4. 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
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5. 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

6. 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

7. 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

8. 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

9. 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
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10. TaxSlayer Input Load Form 1099-MISC -OR-
TaxSlayer > Enter Myself > Income > Form 1099-MISC
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11. TaxSlayer Form 1099-MISC See Pub 4012 D-30 Continued ….
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12. 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

13. 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

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