Rents from box 1 are reported on Schedule E of Form 1040. But if you provided significant services, such as housekeeping, to the tenant, or otherwise engaged in renting property as a business, the income would be reported on Schedule C or C-EZ. Royalties from box 2 are also generally reported on Schedule E, unless the royalties are earnings in your trade or business. In this case, they should be reported on Schedule C or C-EZ. Amounts from box 3 should be reported on the “Other Income” line of Form 1040, identifying the type of payment. If the income is related to a trade or business, it should be reported on Schedule C- C-EZ, E, or F, as applicable.
If an amount is reported in box 5, the fishing boat operator considers you as self-employed. You should report this amount on Schedule C or C-EZ. Medical and health care payments from box 6 should also be included on Schedule C or C-EZ. If there is an amount reported in box 7, it means that the payer did not consider you as an employee, but rather as self-employed. You need to report these earnings on Schedule C, C-EZ, or F, and also complete Schedule SE for the self-employment tax on these earnings, since social security and Medicare taxes were not withheld.
Substitute payments in lieu of dividends or interest, reported in box 8, should be reported on the Other Income line of Form 1040. If box 9 is checked, you should report any income from the sale of these consumer products on Schedule C or C-EZ. Crop insurance proceeds from box 10 should be reported on line 8 of Schedule F. Excess golden parachute payments reported in box 13 are subject to a 20% excise tax. This tax has to be added to the total tax you report on the line for Total Tax on Form 1040, and you have to write “EPP” and the amount of the 20% excise tax on the dotted line next to the Total Tax line.
Of the gross proceeds paid to an attorney in box 14, only the taxable portion should be included on your tax return.
Box 15a, Section 409a deferrals, is the amount you deferred as a non-employee under a section 409a non-qualified deferred compensation plan. Box 15b, Section 409a income, is the income earned on the plan. The taxable portion from box 15a and the income from box 15b are included in non-employee compensation in box 7. The income from this plan is subject to an additional tax.