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Federal input screens

Screen 1099M - Miscellaneous Income (1040)

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Overview

Use this screen to record miscellaneous income information from Form 1099-MISC. The information entered here transfers to the related 1040 forms and schedules. For example, the federal income tax withheld information transfers to the Form 1040, Page 2 line that reports federal income tax withheld from Forms W-2 and 1099. When using the
1099M
 screen in the
Income
 folder, all of the federal and state use codes in the
1099M
 screen are also available in the
Other Income
 statement in the
Income
 screen, located in the
Income
 folder. Data may be entered in the
1099M
 screen or in the
Other Income
 statement in the
Income
 screen. Don't enter the same item in both places.
note
  • Fields with a plus sign (
    +
    ) at the end of the field name aren't used in the tax return, but are available for the Data Mining feature. You don't need to enter information in fields marked with a plus sign unless the data in the field will be used for data mining purposes. Data transfers to these fields from the
    Source Data Entry
     tool.
  • Fields with an asterisk (
    *
    ) at the end of the field name are only for the
    1099M
     screen in the
    Income
     folder. Some other fields are only for the
    1099M
     screen in certain activity folders. Any data in shaded fields will be ignored.
Source data entry
The UltraTax CS
Source Data Entry
 tool lets you enter data on facsimile versions of forms your clients submit for the preparation of their tax returns. Once the facsimile forms are completed, you can export the data and transfer it into your client data files via the Data Sharing feature.

General Information

State
If you're processing a state return, enter a state postal code in this field for proper state processing. Select
F4
 from this field to view a list of available state postal codes.
note
This field is only available for the
1099M
 screen in the
Income
 folder.
Report income on Schedule C as Gross receipts (Default is Schedule C Other income)
Enter
X
 in this field to have amounts entered on the
1099M
 screen reported on the Gross receipts line of the Schedule C unit with which the
1099M
 screen is associated, instead of the Other income line.
note
This field is only available for the
1099M
 screen in the
Business
 folder.
Report income on Schedule F as Custom hire (Default is Schedule F Other income)
Enter
X
 in this field to have amounts entered on the
1099M
 screen reported on the Custom hire income line of the Schedule F unit with which the
1099M
 screen is associated, instead of the Other income line.
note
This field is only available for the
1099M
 screen in the
Farm
 folder.
Federal/State*
Use this field only if you're preparing multiple-state returns. For multiple-state returns, add multiple units of the
1099M
 screen as necessary to enter miscellaneous income separately by state; enter a different postal code in the
State
 field for each unit of the
1099M
 screen. Enter
S
 in the
Federal/State*
 field for all but one of the multiple
1099M
 screen units. The federal application disregards entries coded
S
.
note
This field is only available for the
1099M
 screen in the
Income
 folder.
Federal code*
Enter the code in the field. The following table lists codes available.
Code
Description
1
Gambling income
2
State lottery
3
Bartering income
4
Miscellaneous
5
Txb scholarship inc not on W2
6
Investment income
7
Itemized deduction recoveries
8
Hobby income
9
Child's non SE earned inc
10
Hshld employee inc not on W-2
11
Workfare payments
12
Foreign employer compensation
16
Jury Pay
17
Ordinary inc from stk options
18
Trade adjustment assistance (RTAA)
19
Taxable grants
20
Excess salary deferrals
21
Prizes and awards
note
  • This field is only available for the
    1099M
     screen in the
    Income
     folder.
  • Items entered with code
    5
     aren't included in the compensation calculation for IRAs and aren't included in earned income for Form 2441 purposes.
  • Items entered with code
    12
     will be included in Form 2555 calculations, when Form 2555 is calculating. Also, when code 12 is present with an amount in the box 3
    Other income
     field, the amount will be automatically reported on the Foreign Employer Compensation (FEC) Record and included in federal taxable wages.
  • Items entered with code
    10
     aren't included in the calculations of self-employment income regardless of the self-employment code entered in the
    Subject to self employment tax*
     field.
  • Michigan:
     If state withholding is entered with a Michigan postal code, the data will transfer to Michigan Schedule W automatically.
  • Utah:
     If state withholding is entered with a Utah postal code, the data will transfer to Utah Schedule TC-40W.
  • Electronic filing:
     If you're filing this return electronically and you selected
    Jury Pay
     in the
    Other adjustments
     field in the
    OtherAdj
     screen, located in the
    1040 Adjustments
     folder, you'll need to also select
    Jury Pay
     in the
    Federal Code
     field in the
    1099M
     screen or in the
    Other income
     field in the
    Income
     screen.
Subject to self employment tax*
Enter the code to specify whether the miscellaneous income is subject to self-employment tax.
note
This field is only available for the
1099M
 screen in the
Income
 folder.
Royalties qualify for capital gain treatment
Enter
X
 in this field if the amount of royalties in Box 2 is for the transfer of a patent, or was received on the disposal of coal and iron ore, and qualifies for capital gain treatment. If
X
 is entered in this field, the income amount in Box 2 needs to be entered in the
Sale
 screen or in the
Schedule for detail (Sch D)
 statement in the
B&D
 screen. Refer to IRS Publication 544 for information about properly reporting such royalties.
note
  • If
    X
     is entered in this field, an amount entered in Box 2 won't be reported on the return, but the data will be available for data mining purposes.
  • If the royalties qualify for capital gain treatment, you don't need to enter
    X
     in this field or an amount in Box 2.
  • Data transfers to Box 2 via the
    Source Data Entry
     tool. An FYI diagnostic is generated to verify the amount in Box 2 doesn't qualify for capital gain treatment and that the income won't be reported in the return.
Taxable crop insurance proceeds received in current year
Enter
0
 (zero) in this field to specify that no portion of the crop insurance proceeds amount in Box 9 is taxable.
note
  • To elect to defer the income from crop insurance proceeds until next year, enter information in the statement attached to the
    Elect crop ins deferral to next year
     field in the relevant unit of the
    F
     screen, located in the
    Farm
     folder. Tax elections will automatically print with the return. If the return is being filed electronically, the tax election will be included in the electronic file. If you make this election in the
    F
     screen, don't make the same election in the Letter screen in the
    General
     folder, as duplicate elections may print.
  • This field is only available for the
    1099M
     screen in the
    Farm
     or
    Farm Rental
     folders.
Don't include box 10 proceeds as other income
Use this field if the amount entered in Box 10, Gross proceeds paid to an attorney, is already entered elsewhere on the return. If you enter
X
 in the
Do not include Box 10 proceeds as other income
 field, the amount in Box 10 won't be reported on the return, but the data will be available for data mining purposes.
note
Data will be shared to Box 10 from the
Source Data Entry
 tool. An FYI diagnostic generates to verify that Box 10 data should be included in other income.
Form 2555 allocation code
This field is used to allocate the income between the U.S. and foreign earned income (reported on Form 2555 Allocation Worksheet). Income calculated as foreign earned during the assignment is used to calculate the Form 2555 exclusion. Foreign income earned before, during, and after the assignment is reported, less any exclusion, by Form 1116 as eligible for the foreign tax credit. The application uses this activity's allocation code to allocate any related self-employment income.
Additional data entry is required on the
1116
,
2555
, and
2555-2
 screens to report this activity on Forms 1116 and / or 2555.
State use
Enter a state use code. The codes that are available in this field, which are the same codes as those in the
Other income
 field in the
Income
 screen, are specific to the state postal code entered in the
State
 field in this screen. If state use codes aren't relevant to the entered state, you won't be able to use this field (shaded). The following table lists the state-specific codes available.
State
Code
Description
AZ
21
Enter code
21
 in the State use field to designate Native American income to be excluded from Arizona taxable income.
CA
2
Excl state lotto (used in conjunction with the Federal code field, code 2)
CA
22
Excludable stock option (CQSO) (used in conjunction with the Federal code field, code 17, to subtract CQSO income from wages)
CO
21
Enter code
21
 in the State use field to designate Native American income to be excluded from Colorado taxable income.
CT
21
Enter code
21
 in the
State use
 field to designate Mashantucket or Mohegan Tribe enrolled member income to be excluded from income on the other subtraction line of Form CT-1040 or CT-1040NR/PY.
IA
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Iowa taxable income.
IA
25
Grants from the Injured Veterans Program. Use Federal code 19, Taxable Grants, and enter code 25 in the
State Use
 field to exclude the amount from Iowa income.
IA
27
Victim compensation awards. Use Federal code 4 or blank, Miscellaneous, and enter code
27
 in the
State use
 field to exclude the amount from Iowa income.
ID
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Idaho taxable income.
IL
9
Enter code
9
 in the
State use
 field to designate excludable riverboat / pari-mutuel winnings for Illinois part-year and nonresidents.
KS
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Kansas taxable income.
LA
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Louisiana taxable income.
MI
2
Excl state lotto
MI
4
Property tax refund
MI
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Michigan taxable income.
MN
10
AmeriCorps program award subtraction
MN
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Minnesota taxable income.
MS
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Mississippi taxable income.
MT
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Montana taxable income.
ND
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from North Dakota taxable income.
NE
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Nebraska taxable income.
NJ
2
Excl state lotto
NM
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from New Mexico taxable income.
NY
8
Subject to Yonkers nonresident earnings tax
NY
23
Form MTA
NY
24
Form MTA and Yonkers nonresident earnings tax
OK
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Oklahoma taxable income.
OR
2
Use code 2 to designate Oregon lottery winnings of $600 or less per ticket which will exclude those amounts from Oregon taxable income
OR
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Oregon taxable income.
PA
2
Excl state lotto
PA
3
Business, profession or farm income
PA
11
Executor fee
PA
12
Jury duty pay
PA
13
Director fee
PA
14
Expert witness fee
PA
15
Honorarium
PA
16
Covenant not to compete
PA
17
Damages or settlement for lost wages
PA
18
Other nonemployee compensation
UT
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Utah taxable income.
WI
21
Enter code
21
 in the
State use
 field to designate Native American income to be excluded from Wisconsin taxable income.
note
  • While all of the state use codes from the
    Other income
     statement in the
    Income
     screen are available in this field (depending on the corresponding state postal code entered in the
    1099M
     screen), not all of those codes are relevant to the
    1099M
     screen income.
  • This field is only available for the
    1099M
     screen in the
    Income
     folder.
Delete on next year's proforma
Enter
X
 in this field to delete the content from this screen during next year's proforma.
note
If data transferred to this screen through the
Source Data Entry
 tool, related screen data should be reviewed for duplicate proforma'd information. For example, if the
1099M
 screen is linked to Schedule C, review the descriptions proforma'd to the
Other income
 statement in the
C
 screen for duplicate entries. Don't enter amounts for identical items in both places, as the amount of other income will be overstated.

1099-Misc Facsimile

Use this section to enter the miscellaneous information directly from Form 1099-MISC. If the client has received more than one Form 1099-MISC, enter the miscellaneous information in additional units of this screen.
Fields not used in tax preparation
The fields that have a plus sign (
+
) at the end of the field name aren't used in the tax return, but are available for the Data Mining feature. You don't need to enter information in fields marked with a plus sign, unless the data in the field will be used for data mining purposes. Data will be shared to these fields from the
Source Data Entry
 tool.
Payer's address
Enter the payer's address as reported on Form 1099-MISC. This information is required for some state products.
Rents
Data entered in this field is reported on the related form or schedule. The following table lists where the amount is reported on the form.
Form/Schedule
Line
Schedule C
line 6, Other income, unless the
Report income on Schedule C as Gross receipts
 field is marked
Schedule E, Page 1
line 3, Rents received
Schedule F
line 8, Other income, unless the
Report income on Schedule F as Custom hire
 field is marked
Form 4835
line 6, Other income
note
  • This field isn't available for data entry for the
    1099M
     screen in the
    Income
     folder.
  • If data is present in this field when it's shaded, the data will be ignored by the application.
Royalties
Data entered in this field is reported on the related form or schedule. The following table lists where the amount is reported on the form.
Form/Schedule
Line
Schedule C
line 6, Other income, unless the
Report income on Schedule C as Gross receipts
 field is marked
Schedule E, Page 1
line 4, Royalties received
note
  • Enter
    X
     in the
    Royalties qualify for capital gain treatment
     field in the
    1099M
     screen if the amount of royalties in Box 2 is for the transfer of a patent, or was received on the disposal of coal and iron ore, and qualifies for capital gain treatment. If
    X
     is entered in the
    Royalties qualify for capital gain treatment
     field, the income amount in Box 2 needs to be entered in the
    Sale
     screen or in the
    Schedule for detail (Sch D)
     statement in the
    B&D
     screen.
  • This field is only available for the
    1099M
     screen in the
    Business
     or
    Rental
     folders.
  • If data is present in this field when it's shaded, the data will be ignored by the application.
Other income
When other income is present and code
12
 is selected, the other income amount will be included in federal taxable wages and will be automatically reported on the Foreign Employer Compensation (FEC) Record.
Federal income tax withheld
Data entered in this field will be included in the total federal income tax withheld from Forms(s) 1099 line of Form 1040, Page 2.
Fishing boat proceeds / Medical and health care payments
Data entered in this field is reported on the related form or schedule. The following table lists where the amount is reported on the form.
Form/Schedule
Line
Blank / 1040
Schedule 1, line 8z, Other income
Schedule C
line 6, Other income, unless the
Report income on Schedule C as Gross receipts
 field is marked
note
  • This field is only available for the
    1099M
     screen in the
    Income
     or
    Business
     folders.
  • If data is present in this field when it's shaded, the data will be ignored by the application.
Substitute pymts in lieu of dividends/interest
Data entered in this field will be reported on the other income line of the return.
note
  • This field is only available for the
    1099M
     screen in the
    Income
     folder.
  • If data is present in this field when it's shaded, the data will be ignored by the application.
Crop insurance proceeds
Data entered in this field is reported on the related form or schedule. The following table lists where the amount is reported on the form.
Form/Schedule
Line
Schedule F
line 6a, Crop insurance proceeds
Form 4835
line 5a, Crop insurance proceeds
note
  • This field is only available for the
    1099M
     screen in the
    Farm
     or
    Farm Rental
     folders.
  • If data is present in this field when it's shaded, the data will be ignored by the application.
  • Enter
    0
     (zero) in the
    Taxable crop insurance proceeds received in current year
     field in the
    General Information
     section to specify that no portion of the crop insurance proceeds amount in Box 9 is taxable.
  • To elect to defer the income from crop insurance proceeds until next year, enter information in the statement attached to the
    Elect crop ins deferral to next year
     field in the
    F
     screen, located in the
    Farm
     folder. The tax election will automatically print with the return. If the return is being filed electronically, the tax election will be included in the electronic file.If you make this election in the
    F
     screen, don't make the same election in the
    Letter
     screen in the
    General
     folder, as duplicate elections may print.
Excess golden parachute payments
Enter the total compensation of excess golden parachute payments. The amount as reported on Form 1099-MISC is subject to a 20-percent excise tax. Twenty percent of the amount entered in this field will be reported on Schedule 2, line 17k.
Gross proceeds paid to an attorney
Data entered in this field is reported on the related form or schedule. The following table lists where the amount is reported on the form.
Form/Schedule
Line
Blank / 1040
Schedule 1, line 8z, Other income
Schedule C
line 6, Other income, unless the
Report income on Schedule C Gross receipts
 field is marked
note
  • This field is only available for the
    1099M
     screen in the
    Income
     or
    Business
     folders.
  • If data is present in this field when it's shaded, the data will be ignored by the application.
  • Data will transfer to this field from the
    Source Data Entry
     tool. If this amount is entered elsewhere in the return, enter
    X
     in the
    Do not include box 10 proceeds as other income
     field in the
    General Information
     section of this screen. The data will be available for data mining purposes. If the amount in Box 10 amount is entered elsewhere, you don't need to enter data in this field or in Box 10. An FYI diagnostic will generate to verify that Box 10 data should be included in other income.
Nonqualified deferred compensation
Box 15 reports income under an NQDC plan that fails to meet section 409A requirements. The taxable Box 15 deferral amounts are also included in Box 12. This income is subject to a substantial additional tax reported on Form 1040. Enter the tax with code
6
 in the
Other taxes
 statement, located in the
OtherTax
 screen in the
Taxes
 folder. Refer to IRC 409A(a)(1)(B) for additional information.
State W/H / State/Payer's state no.
Enter the postal code, withholding, state amount, and state payer's identification number in these fields. State withholding amounts entered here transfer to Schedule A, line 5. Several states use this information to complete electronic filing records, withholding worksheets, and records for two-dimensional (2D) bar code purposes.
State income
Enter the amount of state income in these fields. Entries in these fields are used to complete state two-dimensional (2D) bar codes and/or electronic filing records for select states when state withholding is also present; however, they don't affect state return calculations.
States that use these fields:
States
Description
CO
If
CO
 is entered in the Box 16
State
 field and an amount is entered in the Box 16
Amount
 field, a state income amount will need to be entered in the Box 18
State income
 field. This information is used to complete a record for electronic filing and the 2D bar code when Colorado withholding is present in the
1099M
 screen.
IN
Amounts entered in Box 16
Amount
 fields for state withholding are included in the calculation of the Indiana return if
IN
 is entered in the corresponding Box 16
State
 field. Box 16
Amount
 fields are also included as supporting information in the electronic filing record. Amounts entered in Box 18
State income
 fields don't affect the calculation of the Indiana return. The Indiana Department of Revenue requires this information when Form 1099-M includes Indiana withholding in Box 16.
MA
Paper-filed Resident returns:
 Amounts entered in Box 16
Amount
 fields are included on the Massachusetts return and Schedule INC if
MA
 is entered in the corresponding Box 16
State
 field. Per specifications, amounts entered in Box 18
State income
 fields are included as supporting information on Massachusetts Schedule INC regardless of the postal code in Box 16.
Paper-filed Nonresident and Part-year Resident returns:
 Amounts entered in Box 16
Amount
 fields are included on the Massachusetts return and Schedule INC if
MA
 is entered in the corresponding Box 16
State
 field. Per specifications, amounts entered in Box 18 for
State income
 are included as supporting information on Massachusetts Schedule INC if
MA
 is entered in the corresponding Box 16
State
 field.
note
Amounts entered in the Box 18
State income
 fields don't affect the calculation of the Massachusetts return. However, the Massachusetts Department of Revenue still requires this information from Form 1099-M for paper-filed returns regardless of whether or not Form 1099-M includes state withholding.
Electronically filed returns:
 Information from Form 1099-M is included in the Massachusetts electronic record.
MN
If
MN
 is entered in the Box 16
State
 field, the Box 16
Amount
, Box 17
State/Payer's state no.
, and Box 18
State income
 fields automatically transfer to Minnesota Form M1W.
NY
If
NY
 is entered in the
State
 field at the top of the
1099M
 screen, the first Box 18
State income
 field is transferred to the New York
NYOthWH
 screen. The information is only used to complete a record for electronic filing when New York withholding is present in the 1099M screen.
UT
If
UT
 is entered in the box 16
State
 field, the data in the
FIN
;
Payer's name
;
Payer's address, and ZIP code
; Box 16
Amount
; Box 17
State/Payer's state no.
; and Box 18
State income
 fields automatically transfer to Utah Schedule TC-40W. All fields are required to be completed for the Schedule TC-40W if there are Utah withholdings.
VA
If
VA
 is entered in the Box 16
State
 field, the Box 16
Amount
, Box 17
State/Payer's state no.
, and Box 18
State income
 fields automatically transfer to Virginia Schedule INC/CG.

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