I have a question about 1099-MISC Box 3 — How do I report a Form 1099-MISC with an amount in Box 3?
The amount shown on Form 1099-MISC Box 3 is usually from one of these:
- 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.
What is a Schedule C Tax Form and when do you need to file it? Learn more from the tax experts at H&R Block.
Find out if you need to file a new W-4 form for a 2019 tax return. The pros at H&R Block explain everything you need to know about the updated W-4 form.
Receive an IRS 18C letter? Learn more about letter 18C, why you received it, and how to handle it with help from the tax experts at H&R Block.
Will you be subject to an audit if you amend a return to report a charitable donation? Learn more from the tax experts at H&R Block.