What Is the Purpose of the Form 1099 Misc?
Form 1099-MISC is an official IRS form used to report non-wage income or fees paid to non-employees. Employers must file Form 1099-Misc with the IRS as well as provide earner with a copy. If you receive Form 1099-MISC as an individual earner, treat it like a W-2 form and use it when calculating your taxable income.
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What it Reports
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Form 1099-MISC is used to report independent contractor fees, royalties, rents, awards, contest winnings, prizes, health care, medical and legal payments.
Wages of the Deceased
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When an employer pays the wages of a deceased employee to the decedent's estate, they must be reported on Form 1099-MISC.
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Monetary Requirements for Services Rendered
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If a company pays a non-employee independent contractor over $600 over the course of a year, they must provide that person with a 1099-MISC form.
Monetary Requirements for Royalties
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When a company pays over $10 in royalties to a non-employee over the course of a year, they must provide that person with a 1099-MISC.
Monetary Requirements for Consumer Goods
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If you sold more than $5,000 worth of consumer goods to be resold at a location other than permanent retail business, you will need to file a 1099-MISC for the buyer.
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