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

IRS Notice CP2005 – Your Form 1040 Inquiry is Closed

Learn more about notice CP2005, why you received it, and how to handle the notice with help from the tax experts at H&R Block.

Five Clues of Fraud – What to Look For On Your Credit Report

Do you know how to read a credit report? H&R Block tax pros have prepared the top 5 items you should look for when conducting a credit report review.

How to Receive an Additional Tax Extension for Your Return

Need more time to file your tax return? Learn how to receive a second tax extension with the experts at H&R Block.

What Is the Deadline to File State Taxes?

Trying to determine the deadline to file state taxes and if you can e-file your state return after your federal taxes? H&R Block will help you figure it out.