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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, 2018 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)