TaxAct.com FAQs: Gross Receipts, Payer's Name, and 1099 Royalties Explained

[sarahsellcm]

I have a few questions for those who have used taxact.com (pretty simple but not sure how to answer these questions). I really appreciate all your help! I am new this.

What do I do with gross receipts? What do I enter there?

What do I do with Payer’s Name? Do I enter Pampered Chef’s address?

On the 1099 what is considered to be the royalties? Is that how much I earned or do I leave this blank and enter my income earned in the income box?

 

[jwpamp]

In the begining of the question area for income it asks for "Business Income - Gross Receipts", but if you'll note, it says "NOT reported to you on 1099-MISC". We don't enter anything in that box. Just hit "Continue".

In the next 1099-MISC question area, it asks for the Payer and address (yes, that's Pampered Chef). Then enter the info from the 1099-MISC. That is where you enter your income from box#7 and info from box #3 (if you have any).

Please tell me that this helped!

 

[Admin Greg]

1. Gross receipts refer to the total amount of income you received from your business activities. This includes all sales, services rendered, and any other sources of income related to your business. You should enter this amount in the designated box on the tax form.2. Payer's Name refers to the name of the person or entity that paid you the income reported on the 1099 form. If you received income from Pampered Chef, then you would enter their name as the payer. The address is not necessary unless specifically requested on the tax form.3. Royalties refer to any payments you received for the use of your intellectual property, such as patents, copyrights, or trademarks. If you have received any royalties, you should enter the amount in the designated box on the 1099 form. If you did not receive any royalties, you can leave this box blank and report your total income earned in the income box.