1099 Misc Income line 6 amount?

[JON]

Is

it from an insurance company??

[JON]

burke

has it. You have to Provide, charge and get paid for performing medical services to receive anything in Box 6.

[Burke]

Client received a 1099 Misc. with 10,000 listed in line 6, Medical and Health care payments. She received this money as a result of an accident. Is it taxable?

It may be taxable if she had previously deducted medical expenses on her tax return and is now being reimbursed for them. Regardless, however, the 1099MISC is incorrect. Box 6 is not used for that. Call the issuing authority (probably an attorney or his office) and get some details on exactly what the settlement was. (And you can tell them they are doing it wrong.)

[BP.]

Instructions for 1099-Misc say that Box 6 is for reporting payments to providers of health care services. Sounds like there's an error on this 1099-Misc. Maybe Box 3 would have been better? See the instructions for more info.

In any case, see TTB p.3-22 for tax treatment of the accident proceeds.

[Ed Taxes]

Client received a 1099 Misc. with 10,000 listed in line 6, Medical and Health care payments. She received this money as a result of an accident. Is it taxable?