Form 1099-MISC

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Form 1099-MISC: What It Is and When to File

Form 1099-MISC (Miscellaneous Information) is an IRS information return used by businesses to report certain types of miscellaneous payments made to nonemployees. Although nonemployee compensation was moved to Form 1099-NEC beginning with the 2020 tax year, Form 1099-MISC remains important for reporting other specific payment types.

What Form 1099-MISC reports

Common payment types reported on Form 1099-MISC include:
* Rent (Box 1)
* Royalties of $10 or more (Box 2)
* Prizes and awards
* Medical and healthcare payments (paid in the course of a trade or business)
* Crop insurance proceeds
* Payments to attorneys
* Fishing boat proceeds and certain cash payments for fish
* Cash paid from a notional principal contract to an individual, partnership, or estate
* Direct sales of $5,000 or more of consumer products to a buyer for resale (not through a permanent retail establishment)

Boxes you may need to use include Box 1 (Rents), Box 2 (Royalties), Box 4 (Federal income tax withheld), and Box 16 (State tax withheld). Check the current IRS instructions for box assignments and definitions.

Filing thresholds and who must file

  • File a 1099-MISC for royalties of $10 or more.
  • File for most other reportable payments when they total $600 or more in a calendar year.
  • The payer (business or other entity making the payments) is responsible for filing the form with the IRS and furnishing a copy to the recipient.

Deadlines and filing methods

  • File with the IRS by February 28 if filing on paper, or by March 31 if filing electronically.
  • Provide recipients with their copy so they can accurately report the income on their tax returns. Keep payer copies for your records.
  • State filing requirements vary; you may need to send Copy 1 to the appropriate state tax department.

How to file (basic steps)

  1. Obtain official, multiparton 1099-MISC forms (Copy A for the IRS must be machine-readable; order from the IRS or an authorized supplier).
  2. Complete the form with payer and recipient information and the payment amounts in the appropriate boxes.
  3. Distribute copies as required:
  4. Copy A → IRS
  5. Copy 1 → State tax department (if required)
  6. Copy B → Recipient
  7. Copy 2 → Recipient for state tax return (if applicable)
  8. Copy C → Payer’s records
  9. File by the applicable deadline (paper or electronic).

Recipient responsibilities

If you receive a 1099-MISC, include the reported amounts on your tax return. You do not submit the 1099-MISC form with your return, but you should keep it for your records and use it to verify income and withholding.

Related 1099 forms (notable)

  • 1099-NEC — Nonemployee compensation (independent contractor pay)
  • 1099-INT — Interest income
  • 1099-DIV — Dividends and distributions
  • 1099-K — Payment card and third-party network transactions
  • 1099-R — Retirement and pension distributions
  • 1099-S — Proceeds from real estate transactions

Key takeaways

  • Use Form 1099-MISC to report various miscellaneous payments other than nonemployee compensation (which uses Form 1099-NEC).
  • Thresholds: $10 for royalties; generally $600 for other reportable categories.
  • File with the IRS (Copy A) by Feb. 28 (paper) or March 31 (electronic) and furnish recipient copies.
  • Keep accurate records and consult the IRS instructions for specifics on boxes, state filing requirements, and exceptions.