Question

Payer listed income in Box 3 instead of box 7 on my 1099-MISC. How do I fix this?

Forum|Forum|7 years ago
June 5, 2019
3 replies
0 views

No text available

TurboTax Self Employed Online

A

attempttosaveAuthor

What do you mean in your answer that related expenses cannot be deducted? Thank you so much for your help!

K

KenH1

Employee

edited response

K

KenH1

Employee

You should report the 1099-MISC as printed, since the IRS will match it with what the payer reports. if you believe it should have been box 7, you will need to request that from the payer.

Box 3 is usually highly preferable, since it will not result in self-employment taxes of 15.3%; however the expenses would be Employee Business Expenses on Schedule A, and limited to the amount that exceeds 2% of your income.

Box 7 income goes on a Schedule C, but you can deduct expenses without the "2% rule" mentioned above.