1099 misc box 3 coop pmt

[drtaxprep]

new client brought tax return and last yrs return also, trying to understand why previous preparer put $1 under other income when the 1099misc states $640. The 1099 misc is from phone cooperative and is return of payments throughout previous years. Have researched an can find nothing.

[ATSMAN]

new client brought tax return and last yrs return also, trying to understand why previous preparer put $1 under other income when the 1099misc states $640. The 1099 misc is from phone cooperative and is return of payments throughout previous years. Have researched an can find nothing.

I see 1099-Misc with box 3 figures for all sorts of payments taxable and non taxable I think many payers issue a 1099-Misc for any payment over $600 and leave it up to the recipient to figure out if it should be taxable.

If this is a refund of payments made to a phone company that was not deducted then I think the refund should not be taxable. On the othe rhand if they were deducted previously now it becomes taxable.