Thursday, March 12, 2015

What is the Difference Between Income Reported on a 1099MISC Box 3 vs Box 7

Box 3 is taxed at the normal income tax rate while box 7 is taxed as self-employed income.  There is a big difference and income in box 7 should only be income you actually did work for, therefor being self-employed.  Sometimes accounting departments confuse the boxes and you may end up paying more on money you received if its reported in the wrong box.

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