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March 9, 2021
Question

If there were taxes taken out of my Royalties, where do I enter the taxes that was taken out? My 1099-Misc is a Substitute Form 1099-Misc.

  • March 9, 2021
  • 1 reply
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My Substitute form shows an amount for Box 2 as the Gross amount, the Net amount is the amount that has been paid for Taxes.

1 reply

March 9, 2021

When you enter your substitute 1099-MISC form, enter the federal income tax (FIT) withheld in Box 4.

 

 

Taxes are pay-as-you-go. This means that you need to pay most of your tax during the year, as you receive income, rather than paying at the end of the year.

 

  • Tip: To reduce or possibly even eliminate your underpayment penalty,  search for annualizing your tax (use this exact phrase) inside TurboTax. This will take you to the underpayment penalty section and we'll take you through the steps to possibly reduce your underpayment penalty. (If you don’t see Jump to annualizing your tax in the search results, make sure you’re in your return and not on the Tax Home page.).
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