Since Form 1099-MISC is used to report many different types of income, there's no one place in ProConnect Tax to enter this source document. This article will help you determine where to enter different 1099-MISC amounts to report them appropriately on your clients' individual tax returns.
Income amounts you enter on the Form 1099-MISC/NEC screen won't affect the return. You only need to enter 1099-MISC source documents individually there if they report any state or federal withholding. To record income from a 1099-MISC, regardless of whether the 1099-MISC had tax withheld, follow the instructions below to enter the income on the correct schedule.
Box 1 or 2 - rents and royalties:
- On the left-side menu, select Income, then click on Rental and Royalty Income (Sch E).
- Click on the Income Statement section along the top of the screen.
- Enter the total income for this property, including income reported to you on 1099-MISCs, in Rents and royalties received.
You don't have to list out or link each 1099 that makes up your rents or royalties figure. If you want to make sure income from all sources has been recorded:
- Click inside the Rents and royalties received field.
- Press the + button that appears to expand details.
- Enter a description and amount for each 1099.
Since this info isn't required by the IRS, it won't print with the return. For more help, see Entering Rental and Royalty Income for an Individual Return (Schedule E).
Box 3 - other income:
If this income isn't from a trade or business:
- On the left side menu, select Income. Then click on the SS Benefits, Alimony, Misc. Income screen.
- Scroll down to the Alimony and Other Income section.
- Enter the amount and a description in Other Income (Click on button to expand).
The amount will flow to Form 1040, Schedule 1.
Box 4, 15, 16, and 17 - federal and state income tax withheld:
In order to claim tax withheld on 1099-MISC income, the IRS and most states require ProConnect Tax to recreate a digital copy of the Form 1099-MISC your client received and include it in the e-filed return. The program uses your input in Form 1099-MISC/NEC for E-File Returns to meet this agency requirement, AND to report withholding amounts on the appropriate federal or state return.
- On the left side menu, select Income, then click on SS Benefits, Alimony, Misc. Income.
- At the top right, click the Form 1099-MISC/NEC hyperlink.
- Enter the Payer Information.
- Scroll down to the Form 1099-Misc section and enter the box 4 amount in (4) Federal income tax withheld.
- Enter amounts for any other fields that were completed on the 1099-MISC.
- Scroll down to the State Information section.
- Enter the box 16 amount in State tax withheld.
- Select the State from the drop-down menu.
- Enter the box 16 identifier in Payer's state no.
- Enter the box 17 amount in State Income.
Important: Income amounts entered on this screen will not flow to the tax returns. You must follow the steps for the other box amounts you received in this article in addition to completing this screen when withholding is present.
However, federal and state tax withheld entered on this screen do flow to the appropriate line of the tax return (Form 1040, line 25b, for federal amounts). This withholding should not be duplicated or re-entered anywhere else in the tax return.