Question

I have a question about 1099-MISC Box 3 — How do I report a Form 1099-MISC with an amount in Box 3?

Answer

The amount shown on Form 1099-MISC Box 3 is usually from one of these:

  • Prizes
  • Awards
  • Taxable damages
  • Certain benefits of a deceased employee
  • Medical research participation payments
  • Legal damages
  • Indian gaming profits
  • Other taxable income

You’ll usually report this income on Form 1040, Line 21, as Other income. This is taxable income not subject to self-employment tax. When the income reported on Form 1099-MISC Box 3 is from your trade or business, report it with your business income.

Related Topics

Related Resources

What You Need to Know About an IRS Statutory Notice of Deficiency

The Statutory Notice of Deficiency is part of a series of notices sent by the IRS to propose additional tax, penalties and interest. Learn more from the tax experts at H&R Block.

What Is a W-9 Tax Form?

If you need to complete a W-9 tax form, you may be asking what it’s used for and why it’s needed. We explain the purpose and use of an IRS W-9 form.

Form 1099-G, Certain Government Payments

Most Forms 1099-G are received for unemployment compensation or from state or local income tax refunds. Learn more from the tax experts at H&R Block.

What Is Form 1099-G?

If you’ve received unemployment compensation or a state tax refund, you’ll receive Form 1099-G. Learn more about Form 1099-G and how it affects your taxes.