How Do I File My Tax Return If I Get a 1099 Misc?

1099-MISC income must be reported on Form 1040.

The 1099-MISC form contains a person's miscellaneous income reported to the Internal Revenue Service. If you receive a 1099-MISC, you must include the form with your tax return and compute any income, along with all other income sources, on your Form 1040. If you receive a 1099-MISC, you are not eligible to file a 1040A or 1040EZ. The way in which you will include your income on Form 1040 depends on the type of income that is reported on your 1099-MISC. If you are confused or unsure about how to properly file your tax return, you should consult a qualified tax-preparing professional.

Instructions

1. Obtain Form 1040 from the IRS. These forms are available online, from tax preparers, from accountants and from IRS offices. Make sure you are using the form associated with the correct tax year because the forms change from year to year. This form may also be mailed to you by the IRS if you filed a tax return last year.

2. Obtain the correct schedule form if your type of 1099-MISC income requires it. Rent (box 1) and royalty (box 2) payments require Schedule E, while non-employee compensation (box 7) requires Schedule C. Other income (box 3) does not require a schedule form.

3. Fill out any schedules associated with the type of 1099-MISC income you are reporting. Write any values obtained from the schedule forms in the appropriate boxes on your Form 1040. For instance, other income from box 3 must be written on line 21 of Form 1040.

4. Add all 1099-MISC income to your total income on line 22 on Form 1040. This money must also be included in your adjusted gross income (or AGI) computed on line 37.

5. Include any schedules you filled out and all 1099-MISC forms you received with your Form 1040 tax return when you file.

Tips & Warnings

• If you use a tax preparation website or eFile your tax return, the program will automatically enter the information contained on your 1099-MISC on the correct tax return form for you.

• If this is your first time dealing with a 1099-MISC, it is wise to consult a tax-preparing professional. Any mistakes in reporting your 1099-MISC income could result in late filing, fees and penalties.

References

• Internal Revenue Service: 2010 Instructions for Form 1099-MISC
• IRS: 2009 Instructions for Form 1040
• IRS: 2009 Instructions for Schedule C
• IRS: 2009 Instructions for Schedule E