Question

1099 misc box 3

Forum|Forum|6 years ago
September 19, 2019
1 reply
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I'm pretty sure I know the answer to my question but I want to confirm it here.

I am a disabled veteran. My only income is my veterans disability payments which I have already confirmed from several sources is not taxable. I am not required to file a tax return .

I just recently won a 600 dollar prize which I will receive a 1099 misc with the amount in box 3. I'm pretty sure box 3 amounts are not subject to self employment tax.

I believe that since my only income is veterans disability and the 600 dollar prize is less than the standard deduction and shouldn't be subject to self employment tax, that I do not need to file taxes next year. Am I correct?

Carl11_2

Employee

The $600 reported in box 3 of the 1099-MISC *COULD* be self-employment income. So while you are not required to file a tax return, you "might" want to. Otherwise, if the IRS comes back asking you about that $600 and how you obtained it, then you would "HAVE" to file a tax return or some other response to the IRS.

I would suggest to avoid that possibility that you see if you can use the free file option at https://turbotax.intuit.com/taxfreedom/ so you don't have to pay anything for the program.

L

Leigh1178Author

Would a prize be considered self employment income? I understand what you are saying. Do you think the IRS would consider it self employment income and have me file or explain the 600 dollars? I know you say it could happen but should it?

It's been awhile since I've filed. I've been disabled for almost a decade since a bad deployment to Iraq.

I now have more questions. If I do choose to file, which I assume I just claim the 600 dollars and not my veterans disability payments? Also I have 2 young children and my spouse does not work. So would I end up with a refund?

I prefer not to file. I would prefer not to get a refund. I know this sounds weird and probably unheard of turning down money. But if I were to get a refund I wouldn't want it. I am a minimalist and do not like taking more than I need. I am thankful for my veterans disability and it is plenty for me to support my family.

I would rather not file if I don't have to in order for that time and money to be spent elsewhere, where it is needed. Of course I will file if that is what's required.