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.

What it Reports

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

When an employer pays the wages of a deceased employee to the decedent's estate, they must be reported on Form 1099-MISC.

Monetary Requirements for Services Rendered

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

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

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.