If you participated in a clinical trial and received compensation through Greenphire, you may have received a 1099-MISC form this tax season. This form reports income paid to you for participating in the study and is required by the IRS when total payments exceed $600 in a calendar year.
But what if you only participated in a few visits and received a modest amount—say $1,062—with no federal taxes withheld? When you try to file online using free tax software, you might be surprised to find it asks you to upgrade to a paid version just to report this form. Why is that, and what are your options?
Why Did I Get a 1099-MISC for a Clinical Trial?
Clinical trial payments are considered “other income” and reported in Box 3 of Form 1099-MISC. While this is not self-employment income, many tax platforms still require additional forms or upgrades to file properly. And even though no taxes were withheld from your payments, the IRS still expects you to report them.
You may not owe much (or anything!) depending on your total income—but it’s important to file correctly.
Affordable Filing Options for Clinical Trial Participants
The good news: You don’t need to pay $100+ to file a simple return with a 1099-MISC. Here are a few affordable—or even free—ways to file correctly:
1. IRS Free File Program
If your adjusted gross income (AGI) is $84,000 or less, the IRS Free File program lets you use commercial software partners to file your federal return at no cost. Make sure you choose a provider that supports 1099-MISC Box 3 income in their free version.
Start here: irs.gov/freefile
2. FreeTaxUSA
FreeTaxUSA is a trusted option for participants with 1099-MISC income. Their free federal filing includes support for Box 3 income, and the state return is $14.99. You can manually enter your 1099-MISC or import it for faster entry. Visit: freetaxusa.com
3. VITA: Volunteer Income Tax Assistance
If your total income is $67,000 or less, you may qualify for free, in-person tax help through the IRS VITA program. VITA volunteers are IRS-certified and can help you report your 1099-MISC income correctly—especially if you’re not familiar with tax filing.
Find a local site: irs.treasury.gov/freetaxprep
“VITA is a great option for people who don’t want to navigate tax software alone,” says Sasha Man. “Clinical trial payments can be confusing, but trained volunteers are there to help you through it—often for free.”
What About H&R Block or TurboTax?
While popular, these platforms often require you to upgrade to report “other income” (Box 3 of a 1099-MISC). A more affordable route may be to purchase H&R Block’s downloadable Deluxe + State software, which costs around $39 and supports 1099-MISC reporting without requiring the full premium version.
Quick Tips for Clinical Trial Participants:
· Keep records of your visits and payments, even if you didn’t receive a 1099 (the IRS still expects you to report all income).
· Understand what’s reported: Clinical trial compensation is reported in Box 3 of the 1099-MISC as “other income.”
· You may not owe tax: Depending on your total income and deductions, the 1099-MISC may not lead to a tax bill—but filing it is still required.
In Summary
Receiving a 1099-MISC for participating in a clinical trial doesn’t mean you need to spend a fortune to file. There are affordable and reliable ways to report your income, meet IRS requirements, and avoid surprises down the line.
At Greenphire, we’re committed to helping clinical trial participants understand their compensation and tax obligations—with clarity and support.
Have questions about your 1099-MISC from Greenphire?
Email: [email protected]
Call: 215-383-1436
Disclaimer: Greenphire is not a tax advisor. This article is intended for general informational purposes only and does not constitute tax, legal, or accounting advice. Individuals should consult a qualified tax professional for advice tailored to their individual situation.
Note: Greenphire facilitates participant payments on behalf of clinical trial sponsors and sites, but is not the legal payor of record. The information above is provided to help participants better understand how to navigate IRS reporting obligations.
Written by CPAs for educational purposes only. This is not a substitute for personal tax advice.
(Both authors are former IRS VITA preparers and passionate about accessible tax support.
