IRS FORM
Form 1099-MISC
Miscellaneous Information
Miscellaneous Information
A 1099-MISC, “Miscellaneous Information”, is a form used in the U.S. to report certain types of income which isn’t considered regular wages, salaries, or tips. The form is generally used to report payments made in the course of a trade or business to someone who is not an employee. The 1099-MISC is an essential document for tax reporting purposes, ensuring that information is correctly reported to the Internal Revenue Service (IRS).
Per the IRS, you must file Form 1099-MISC for each person to whom you have paid during the year:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
- At least $600 in:
- Rents.
- Prizes and awards.
- Other income payments.
- Medical and healthcare 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.
- Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
- Payments to an attorney.
- Any fishing boat proceeds.
In addition, use Form 1099-MISC to report that you made direct sales of consumer products of at least $5,000 to a buyer for resale anywhere other than a permanent retail establishment.