1099 MISC Reimbursment of Medicare Pt B in Box &

[jan1115]

Good Morning:
I have a retired client who is 63 and MFJ. He recieves a 1099MISC (box 7) for Reimbursement of Medicare Part B premiums paid on Social Security each year. I have been told that this goes on line 21 of the 1040 and it is NON taxable but that I must show this amount and then take it back off somehow. Is this the correct way of doing this and does this amount affect the taxable part of his social security on line 20 B of the 1040? I am working with Pro Series and do not know how to show it then take it off. I would Greatly apprecaite anyones help on this. Thanks so much in Advance. Jan

[ChEAr$]

1099 misc

Good Morning:
I have a retired client who is 63 and MFJ. He recieves a 1099MISC (box 7) for Reimbursement of Medicare Part B premiums paid on Social Security each year. I have been told that this goes on line 21 of the 1040 and it is NON taxable but that I must show this amount and then take it back off somehow. Is this the correct way of doing this and does this amount affect the taxable part of his social security on line 20 B of the 1040? I am working with Pro Series and do not know how to show it then take it off. I would Greatly apprecaite anyones help on this. Thanks so much in Advance. Jan

Box 7 is for non employee compensation, and therefore subject to SE tax itself. I doubt
that this is the case. Payor evidently misclassified this reimbursement. Should be in
box 3, "other".

It it were nontaxable, no 1099 need be issued, so now you see it does go on line 21.
But probably a paper return is indicated with a copy of the 1099 along with explanation
as to why no schedule se is included.