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.