• Information on Form 1099-MISC paper documents is entered on the Form 1099-MISC page, reached from the main Income page in the Federal Section. However:
    • Any amount in boxes 5, 6 (except for caregiver payments), and/or boxes 7 through 14, and/or the “FATCA” box near the bottom, make the return out-of-scope.
    • Activities that generate income and offsetting expenses but don’t meet the criteria of being for income or profit (such as coin collecting) are classified by the IRS as a hobby and make the return out-of-scope. 
  • Amounts paid on a Form 1099-MISC must be entered so that TaxSlayer puts the income in the correct place on the tax return.
  • Income in box 3, “Other income”, is carried by TaxSlayer to Schedule 1 Line 8z, “Other income”.
    • If income reported in box 3 of the paper Form 1099-MISC does belong on Schedule 1 Line 8z, then the form can be entered normally on the Form 1099-MISC page in TaxSlayer.
    • [Workaround] If income reported in box 3 does not belong on Schedule 1 Line 8, but in fact is business-related and belongs on Schedule C, then enter the amount in TaxSlayer as if the amount had been in box 1 of a 1099-NEC, on the TaxSlayer page for 1099-NECs.
  • Income in box 2, “Royalties”, is normally carried by TaxSlayer to a Schedule E.
    • [Workaround] If income reported in box 2 is due to the taxpayer’s own personal services, such as being an author or entertainer, then it belongs on a Schedule C. Enter the amount in TaxSlayer as if the amount had been in box 1 of a 1099-NEC (yes, use a different form in TaxSlayer).
      • Tip: Business code 711510 is for “Independent artists, writers, & performers”.
  • Strike benefits are reported on a 1099-MISC, using box 3. They are taxable income, not subject to self-employment taxes, but do count as earned income for the federal EIC.
  • Note: Form 1099-MISCs (and 1099- NECs) are required to be issued only when payments are made in the course of trade or business, and total at least $600 for the year for a specific person. So, for example, a couple who are getting married and pay $1,000 to a wedding planner has no requirement to issue a 1099-NEC to the wedding planner. Nor does a restaurant, say, if it hires a musician on a single occasion during the year, for a fee of $400, even though the restaurant frequently hires musicians.
  • Note for CA returns: If Box 15 has an amount in it, enter that in TaxSlayer, along with the State (California) and the CA EIN. Otherwise, no state information needs to be entered.

Indian Tribal Income 

  • Note for CA returns: Indian tribal income, paid on a Form 1099-MISC, may require special treatment on the CA return.
    • An amount in box 3 of Form 1099-MISC can represent a portion of the profit from a casino or other business on tribal lands. This is always taxable on the federal return.
    • Indian Tribal Income reported on Form 1099-MISC is exempt from CA tax ONLY IF the recipient is (a) an enrolled member of the Indian tribe that issued the 1099-MISC (presumably yes); and (b) lived on that tribe’s land.

California Middle Class Tax Refund (MCTR) (2022 only)

  • California Middle Class Tax Refund (MCTR) payments, made between October 2022 and January 2023, are nontaxable on the federal tax return, and nontaxable on the California return. 
  • The IRS confirmed that these payments should not be reported on the tax return.

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