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.

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