Learn More About 1099-MISC
What is a 1099-MISC?
1099-MISC is used to report payments for services performed for a business by people not treated as employees. (Example: Payments to subcontractors, freelancers, rent payments, or prizes.) A 1099-MISC form must be provided to the recipient, filed to the IRS, and filed to the state agency (where applicable).
Why do I file 1099-MISC?
The IRS requires that all income is reported by businesses and individuals or penalties could apply.
Who needs to file 1099-MISC?
Any business which pays for various services performed by an individual who is not an employee must file Form 1099-MISC. See the official IRS instructions.
When do I file 1099-MISC?
1099-MISC forms are required to be mailed to the recipient and e-filed with the IRS by January 31, 2017 when reporting nonemployee compensation payments in box 7. State filing deadlines vary by state, view state 1099 deadlines.
|What to report||Amount to report|
|Payments for services performed for a trade or business by people not treated as its employees. Ex: Subcontractors.||$600 or more|
|Direct sales of consumer goods for resale.||$5,000 or more|
|Rent or royalty payments; prizes and awards that are not for services, such as winnings on TV or radio shows.||$600 or more, except $10+ for royalties|
|Payments to crew members by owners or operators of fishing boats, including payments of proceeds from sale of catch.||All amounts|
|Fish purchases paid in cash for resale.||$600 or more|
|Substitute dividends and tax-exempt interest payments reportable by brokers.||$10 or more|
|Crop insurance proceeds.||$600 or more|
|Gross proceeds paid to attorneys.||$600 or more|
|Payments to a physician, physicians' corporation or other supplier of health and medical services. Issued mainly by insurance plans or medical assistance programs.||$600 or more|
|Section 409A deferrals and income from non-qualified deferred compensation plans.||All amounts ($600+ if deferrals)|