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:
- 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.