Things You'll Need:
- Calculator Receipts Form 1099-MISC
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Step 1
Fill in the name and contact information of the payer in the top left box. Fill in the payer's federal identification number (FIN). Large corporations have a FIN that is not a social security number. Small, independently owned companies that are run by one person may use the owner of the company's social security number as the FIN.
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Step 2
Input the identification number of the independent contractor, physician, etc. you paid monies amounting to $600 or more to. All gross proceeds paid to lawyers in any amount must be reported. In many instances the recipient's identification number will be the social security number. In the next three boxes fill in the recipient's name, street address and apartment number if the recipient resides in an apartment, city, state and zip code.
If the recipient gave you an account number to use when distributing payments to them for services rendered, populate the box labeled "Account number" with that number. -
Step 3
Report payments received. Use box 1, "Rents," to report rental payments received. For box 2, "Royalties," note coal, timber or iron ore royalties you received. For more information on royalties reporting, reference IRS publication 544.
Fill box 3, "Other Income," with additional non-salary earnings you received during the taxable year. Examples of this income are game prize money you received, awards, beneficiary payments received, etc.
Use box 7, "Non-employee compensation," to report payments you received in the fishing business. An example of the payments includes earnings received from the sale of fish to a restaurant or grocer.
Identify agriculture related insurance payments you received for damaged crops, etc. in box 10, "Crop insurance proceeds." The amount of insurance monies received is also reported on Schedule F.
In box 8, "Substitute payments in lieu of dividends or interest," show alternate payments you received in place of dividend or tax-exempt interest payments sent to your broker on your behalf.
Check box 9, "Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient) for resale," to report income you received for selling products on a commission or deposit basis. Report the specific amount of the income you received when you complete your Schedule C or 1040 forms.
Fill box 13, "Excess golden parachute payments," with special severance payments you received. Golden parachute payments are special severance payments made to senior company executives in reference to a merger or acquisition. -
Step 4
Identify income tax withheld. Account for withholding and backup withholding taxes on Indian gaming profits in Box 4, "Federal income tax withheld." In regards to backup withholding, generally when you receive gaming profits but do not provide your taxpayer identification at the receipt of the profits, the payer must withhold 28 percent of the profit. You report those federal withholding taxes here as well.
Use boxes 16 to 18 to report state tax withheld. Specifically, in box 16, report "state tax withheld" on non-salary earnings. In box 17, report the state/payer's identification number. Finally, use box 18 to report the total amount of state income received on non-salary earnings that the state tax was withheld against. -
Step 5
Report payments you paid. note fishing boat payments made to workers of fishing boats you own and operate in box 5, "Fishing boat proceeds." Crew members you make payments to are required to complete a Schedule C or Form 1040 to report income received from you. For more information on fishing boat income, reference IRS publication 334.
Use box 6, "Medical and health care payments," to report payments of $600 or more that you made to a doctor, doctor's corporation or other medical and health services provider (basically in reference to medical assistance plans or accident and health insurance plans).
Use box 14, "Gross proceeds paid to an attorney," to report payments made to your lawyer in relation to legal services. All monies paid by you to an attorney must be reported here. -
Step 6
Check with your accountant to obtain additional copies of the 1099-MISC. You can also order additional forms online (see Resources below) or call (800) TAX-FORM to request that forms be mailed to you. Companies that have 250 more 1099-MISC forms to complete due to hiring and paying 250 or more independent contractors must file their forms electronically.
Copy 1 of the 1099-MISC goes to your state tax office. Copy "A" of the form goes to the internal revenue service. Copy "B" of the form goes to all independent contractors and other people you made payments to. The recipients should include a copy of the 1099-MISC when they file a Schedule C or 1040 form to report their income received. Keep Copy "C" of the form for your own records.
If you file your 1099-MISC electronically, the forms will automatically be sent to the corresponding office. However, you must be sure to give recipients of payments you made a copy of their 1099-MISC.
