How To Prepare Form 1099 Misc
A 1099 MISC form is required by the Internal Revenue Service (IRS) to report miscellaneous income paid or received from a taxpayer during the year. This includes payments of at least $10 in royalties or tax, exempt interest, fishing boat proceeds, any work or rents over $600 or gross proceeds to an attorney. Payers must issue a 1009 MISC form to a recipient before January 31, 2011 for the 2010 tax year. If payments are reported in boxes 8 or 14, the due date is extended to February 15.
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Instructions
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1
Print a copy of a 1099 Misc. form at the IRS website. It is classified under the miscellaneous income section.
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2
Put the payer’s name, street address, city, state, zip code and telephone number in the box to the top left of the form. Either type or print the information using black ink.
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3
Place the payer’s Social Security Number or employer identification number (EIN) in the box for the payer's federal identification number.
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4
Add the recipient's identification number in the appropriate box. This is the number provided by the worker, such as tax identification number (TIN) or Social Security Number.
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5
Provide the recipient's name in the box, and then complete the address. Enter an account number if the payer supplies one in the box marked "Account number." If one is not provided, leave this box blank.
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6
Use the appropriate box to report the miscellaneous income, such as rents in box 1, royalties in box 2, etc. Box 7 is used for income received where no income taxes were withheld.
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7
Place substitute payments in lieu of dividends or tax, and exempt interest received by a broker on behalf of a recipient in box 8. Check box 9 if $5,000 or more of consumer product were sold and a commission was paid to the recipient.
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8
Provide parachute compensation from payments in box 13. If gross proceeds were paid to an attorney, place this amount in box 14. Only use box 15a and 15b if non-employee non-qualified deferred compensation (NQDC) payments were made to a recipient (see Resources). Boxes 16 through 18 are used to report any tax withheld from payments.
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References
Resources
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