Question

Which box on 1099-MISC should be filled?

Forum|Forum|6 years ago
March 2, 2020
1 reply
0 views

My company pays a monthly allowance to salaried employees. These employees sometimes have to use their personal home office for business purposes and therefore the company pays a monthly "stipend" or allowance. The employees are issued a 1099-MISC at year end with Box 1 (Rents) completed for the amounts paid. When I try to file my taxes, the software does not like this additional income in Box 1 and I am prompted to change to Box 3 (Other Income). What is correct for this situation? Is my employer wrong in how they report this income?

D

DianeC958

Since you do not really rent the space to your employer it makes more sense to have the income show in Box 3 of the 1099-Misc as Other Income.

If you could get your employer to file a corrected 1099-Misc and move the income to Box 3 that is best so that what you report on your return agrees with the information sent to the IRS on the 1099-Misc Form.

Then you report the income in TurboTax