How Can I Enter Form 1099-MISC and Schedule C in ProWeb? 

Various miscellaneous payments made to an individual are reported on Form 1099-MISC. In 2021, the Form, which was previously known as Miscellaneous Income, was renamed Miscellaneous Information. 

There are payments that have to be included on Schedule C after being reported on Form 1099-MISC. The payment is entered in either of two places, dependent on the box it is in; Form 1099-MISC or under Gross Receipts in Schedule C. 

To enter Form 1099-MISC in Taxx Savage ProWeb: 

• Go to the Federal Section of a tax return 
• Select Income 
• Then 1099-MISC - For MFJ returns, indicate the owner of the return
• After entering the first 1099-MISC, you can add another by clicking +Add another Form 1099-MISC

To create or edit Schedule C in ProWeb: 

• Go to the Federal Section of a tax return 
• Select Income 
• Then Schedule C 
• After entering the first Schedule C, you can add another by clicking +Add a Schedule C Income from Business. 

Box 1 - Rents 

These are normally reported on Schedule E. They are reported on Schedule C in  the following circumstances: 

• Where the taxpayer was providing services considered significant to the renter. These include maid services. They however do not include utilities, cleaning of public areas, or trash collection. 
• Where the taxpayer is a real estate dealer, the rental income and expenses from real estate rentals held for sale are reported on Schedule C. 
• Where the taxpayer has a business that rents personal property, the rental activity is reported in Schedule C. Rental activities may include vehicles or equipment. 

Enter the payment directly in Schedule C under Gross Receipts. 

Box 2 - Royalties 

Payments for Oil and gas from a working interest are to be reported on Schedule C under Gross Receipts. It is not to be entered in Form 1099-MISC. 

Box 3 - Other Income 

Amounts in Box 3 that are connected to the business of the taxpayer are reported on Schedule C under Gross Receipts. They are not to be entered on Form 1099-MISC. 

Box 5 - Fishing Boat Proceeds

These are entered in the Form 1099-MISC menu after which you make a choice whether to include it in a new Schedule C or an existing one. 

Box 6 - Medical and Health Care payments

These are first entered in the Form 1099-MISC menu then reported on either a new Schedule C or an existing one. 

Box 10 - Gross Proceeds Paid to an Attorney 

The payment in this box usually represents payments made in a bid to settle an agreement. (Commonly, it is on Form 1099-NEC that payments for legal services are reported). After determining the portion of the payment subject to tax, enter it directly in Schedule C under Gross Receipts and not through Form 1099-MISC menu.