What Is a 1099-MISC Form?
A 1099-MISC is a form used by businesses to report miscellaneous taxable payments to many different kinds of payees.
Don't use the 1099-MISC form for payments you make to independent contractors, attorneys, and others who provide services to your business. You must file the new Form 1099-NEC (for non-employee compensation) to report these payments.
Who Uses Form 1099-MISC?
If you are in a trade or business, you must use 1099-MISC forms to report the amount you’ve paid to others during the year. The IRS considers “trade or business” to include:
- Operating for gain or profit
- A non-profit organization, including 501(c) 3 and (d) organizations
- A trust of a qualified employer pension or profit-sharing plan
- A non-exempt farmers’ cooperative
- A widely held fixed investment trust
Who Receives a 1099-MISC Form?
Use Form 1099-MISC to report payments of $600 or more to a specific payee for the year (exceptions below). This is a list of the most common types of payees, including which box on the form to use.
- Rents (Box 1): Payments to rent or lease space, to the owners of that space (not real estate agents or property managers), and payments for machine rentals.
- Prizes and awards (Boxes 3 and 7): The fair market value of merchandise awards, but not from wagers.
- Medical and healthcare payments (Box 6): Payments to healthcare providers and medical or health care service providers.
- Attorneys (Box 10): Payments to attorneys for gross proceeds (from a lawsuit settlement, for example), but not for attorney legal fees (reported on Form 1099-NEC).
- Exceptions to the Minimum $600 a Year Regulation.
- Royalties (Box 2): Payments of at least $10 during the year to owners of a property (including intellectual property) for use of that property.
- Backup withholding (Box 4): All withholding from anyone from whom you withheld money as a result of a backup court order, even if it’s less than $600. Report backup withholding from non-employees on Form 1099-NEC.
- Direct sales (Box 9): Sales of at least $5,000 of consumer products for resale anywhere other than a permanent retail establishment. Enter an “X” in the checkbox; don’t enter a dollar amount.
- All excess golden parachute payments (Box 13): Amounts over average annual compensation for services included in the individual's gross income over the past five years.
Don’t use Form 1099-MISC to report payments to: - Employees; use Form W-2 for all types of payments to employees.
- Non-employees such as independent contractors, attorneys, and others who provide services to your business (with some exceptions).
- Corporations (with some exceptions).
- Pay for merchandise, telegraphs, telephone, freight, storage, and other similar items.
What is the deadline for Form 1099-MISC?February 15 is the due date for furnishing statements to recipients for Forms 1099-B, 1099-S, and 1099-MISC. |