Navigating Tax Season As A 1099-MISC Recipient: Tips For Filing Affordably And Accurately

By Arpeeneh Adamian, CPA – Senior Tax Director, and Sasha Man, CPA – Tax Manager

Explore the tax implications for individuals who received compensation for participating in clinical trials, specifically focusing on the issuance of the 1099-MISC form. If total trial payments exceed $600, participants must report this income to the IRS, even if no federal taxes were withheld.

This article highlights the need for tax software upgrades to accurately report this income, noting that many popular platforms may impose additional costs. However, it presents several accessible alternatives for filing, including the IRS Free File Program for those with an AGI of $84,000 or less, FreeTaxUSA for free federal filing, and VITA for eligible individuals seeking in-person assistance. Quick tips emphasize the importance of record-keeping and understanding income classification, reassuring participants that while filing is necessary, they may not owe taxes based on their overall financial situation.