Where do I report income from 1099-MISC forms?

April 14, 2004

Subject:  1099-MISC question
From:  Barbara
Date:  Fri, 2 Apr 2004

Dear Mike,

I work in computer sales for a PC components distributor. I have received two 1099-MISC forms -- one from a vendor who gives us commission money in the form of cash, the other from a vendor on whose website I had won prizes/awards that exceed $600. Where do I report the income from these 1099 forms?

Thank you for your time,
Barbara
San Jose

Answer

Date:  Fri, 2 Apr 2004

Hello Barbara,

The commissions should probably be reported on Schedule C. As an "independent contractor" receiving commissions, you are considered to have a trade or business. The prizes should be reported as "other income" on line 21 of Form 1040.

Good luck!
Mike Gray

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