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February 16, 2024
Question

1099-MISC Income - Accident & Sickness Insurance Payment

  • February 16, 2024
  • 1 reply
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I have received a 1099-MISC form for $20,000 Box 3-Other Income from an employer offered critical illness policy, which I paid the premiums through payroll deductions, for an approved claim for a covered illness.  I am under the impression that this payment on an approved claim is not taxable by the Federal IRS. I have entered the 1099-MISC form for $20,000 Box 3-Other Income in Turbo Tax desktop software in the Wages & Income section but errors come up under the Federal Review on Turbo Tax.  The Federal Review on Turbo Tax asks me to populate more information on a form but none of the issues makes sense. Did I enter the 1099-MISC form for $20,000 Box 3-Other Income in the correct area under the Wages & Income section?

    1 reply

    February 16, 2024

    Were the payroll deductions pre-tax or after-tax?

     

    If you paid for this pre-tax, generally the benefits are taxable.   If you paid it after-tax, the benefits are tax-free.