Who Must Receive a 1099 MISC?

A 1099-MISC form comes from the Internal Revenue Service and lists income that is not related to wages. (Wage income is reported on the W-2.) The IRS uses this form to determine whether taxes are owed. Workers who receive 1099-MISC income normally must mail tax payments quarterly to the IRS.

Royalties

Anyone paid royalties of more than $10 in a calendar year requires this form.

Minimum Threshold

If a person receives more than $600 in a calendar year and is not an employee of the company, he must use this form.

Private Contractors

Examples of private contractors who must get this form include actors, guest speakers, consultants and attorneys.

Prizes

Anyone who wins a prize over the threshold requires this form. If the prize isn't cash, its fair market value is listed as income.

Taxes required

State and federal taxes aren't normally withheld from income derived under this form. However, taxes are still owed. If a person doesn't receive a 1099-MISC form because her income is under the threshold, she also still owes taxes on that income.

Date Due to Taxpayer

This form must be mailed to the recipient before January 31 of each year.