Form 1099-MISC Miscellaneous Income is a tax document that's used by business owners to report any payments that don't qualify as non-employee compensation.
Businesses that pay people who aren’t direct employees or other businesses must report this compensation on either a 1099-NEC or 1099-MISC. A 1099-NEC Nonemployee Compensation reports how much money was paid to independent contractors or other service providers for work that was performed. For all other payments which do not belong on a 1099-NEC, a 1099-MISC can be used as a “catch-all” for reporting them.
What Gets Reported on Form 1099-MISC?
A Form 1099-MISC should be sent to each person who received at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest, or anyone who's received at least $600 in:
- Rents
- Prizes and awards
- Other income payments
- Medical and health care payments
- Crop insurance proceeds
- Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish
- The cash paid from a notional principal contract to an individual, partnership, or estate
- Payments to an attorney
- Any fishing boat proceeds
Form 1099-MISC should be used to report the direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.
Where Can I Find Form 1099-MISC?
If you have a business and need to file a Form 1099-MISC, then you can download a template and find instructions on the IRS website.
If you received any of the above compensation, then the provider should mail you a copy of your 1099-MISC.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article