What is Form 1099-MISC | Tax1099.com

1099 Forms



Form 1099-MISC

What is 1099-MISC?

What is it?

Companies use the 1099-MISC (for Miscellaneous) most frequently to report payments to vendors who provide services to them. While there are 10 boxes on the form for reporting amounts paid to vendors, companies use Box 7, for Nonemployee Compensation, most frequently. The boxes where companies may report income amounts and their thresholds for required reporting are:

Box Description
Box 1 Rents of $600 or more
Box 2 Royalties of $10 or more
Box 3 Other income not reportable in the other boxes, such as prizes, awards, and the fair market value of merchandise won on a game show of $600 or more
Box 4 Federal income tax withheld
Box 5 Fishing boat proceeds
Box 6 Medical and health care payments of $600 or more
Box 7 Nonemployee compensation of $600 or more
Box 8 Substitute payments made in lieu of dividends or interest of at least $10
Box 9 Checked when “the Payer made direct sales $5,000 or more of consumer products to a buyer for resale”
Box 10 Checked when “the Payer made direct sales $5,000 or more of consumer products to a buyer for resale”
Box 11 do not use for 2014
Box 12 do not use for 2014
Box 13 Excess golden parachute payments
Box 14 Gross proceeds paid to an attorney of $600 or more

Who needs it?

The payment must be $600 or more per year for services and it should be done in the course of your trade or business. All LLCs must be issued a 1099-MISC. For an S-corporation or C-corporation, generally you do not have to report 1099–MISC income, but you need to also consider these exceptions.

  • Attorney’s fees
  • Medical and health care payments (such as for pre- employment physicals)
  • Fish purchases for cash
  • Gross proceeds paid to an attorney (such as for legal settlements)
  • Substitute payments in lieu of dividends or tax-exempt interest
  • Payments by a federal executive agency for services
Who needs 1099 MISC?
Filing Type Due Date
Recipient copy January 31, 2017
Recipient copy January 31, 2017
IRS Paper Filing – Box 7 January 31, 2017
IRS Paper Filing – Other Boxes February 28, 2017
IRS e-File – Box 7 January 31, 2017
IRS e-File – all other boxes March 31, 2017
How long will 1099-MISC form take?

Electronically filed 1099-MISC forms are directly transmitted to the IRS from the Tax1099.com system. IRS e-filed acceptance acknowledgment comes within 24-48 business hours.

Pricing

Pricing

As low as $0.55 per recipient/per form. For detailed pricing info, click here .