Revised 1099-MISC Form – Miscellaneous Income Form

The Form 1099- MISC is an IRS Form that is used to report the types of miscellaneous compensations such as rents, awards, prizes, payments made to the attorney, healthcare payments, etc. Previously, the Form was used to report non-employee compensation for independent workers, freelancers, and sole proprietors as well. From the year 2020, such non-employee compensation is reported in Form 1099-NEC. Both these Forms pertain to business payments and do not appeal to personal payments. 

Who Files Form 1099-MISC?

The Form 1099-MISC that reports miscellaneous income is filed by someone who has paid at least $10 in royalties or broker payments in lieu of tax-exempt interest or dividends paid to another person. Businesses send Form 1099-MISC to each person to them they have paid at least $600 in the financial year as rents, prizes, other income payments, etc. Other categories under which Form 1099-MISC can be filed are as follows.

  • Real estate agents and property managers will report the rent paid to the property owners through this Form and this could also include the rent paid for the office spaces.
  • Cash awards and prizes.
  • Medical and healthcare payments that are made in the course of the business.
  • Proceeds paid towards crop insurance
  • Cash payment is made for fish and other purchases made to someone who indulges in catching live fish.
  • Payments made to an attorney.
  • To report direct sales of at least $5000 of consumer products for resale to a buyer.

The Form is sent by the payer to the recipient by February 1st of the tax year and filed with the IRS by March 1st (through the mail) or by March 31st (if filed electronically). The recipient can then use the Form to report their tax returns. 

Components of the Revised Form 1099-MISC

The revised version of Form 1099-MISC is available on the IRS website. Copy A of the Form appears in red and it is meant for official use only.  The black portion of the form should be filled and printed.

The payer should include their name, address, TIN, and the recipient’s name, address, and SSN to complete the Form. The Revised Form 1099-MISC has different boxes for reporting different types of payments.

  • Box 1: Reports rents from real estate on Schedule E
  • Box 2: Reports royalties from oil, gas, mineral properties, patents, and copyrights.
  • Box 3: Report payments received as a beneficiary of the deceased employee.
  • Box 4: Shows backup withholding, when the payer didn’t furnish the TIN number. This amount is reported as tax withheld.
  • Box 5: Shows amount paid to a fishing boat crew member.
  • Box 6: For individuals reported on Schedule C.
  • Box 7: Reports income that is reported as sales of consumer products totaling $5000 or more.
  • Box 8: Shows substitute payments in lieu of dividends or tax-exempt interest received as a result of a loan on securities.
  • Box 10: Shows gross proceeds paid to an attorney for their legal services.
  • Box 11: Amount paid towards the purchase of fish.
  • Box 12: Shows current year deferrals as a non-employee.
  • Box 13: Reports excess golden parachute payments.
  • Box 14: Shows income of non-employees under NQDC plan.
  • Box 15-17: Income tax withheld from the payments.

More details on Form 1099-MISC and electronic filing of the same can be obtained at Tax2efile for an efficient and hassle-free online tax filing process. 

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