Form 1099-MISC

What is Form 1099-MISC?

Form 1099-MISC, or “Miscellaneous Information,” is an IRS form used to report various types of income you’ve paid to a person (generally not an employee) during the year. It covers everything to do with making sure people report what they earned-whether a landlord collecting rent or someone winning a prize-and pay taxes on it.

If you are a business or individual who paid someone $600 or more in 2025 for these things ($10 or more for royalties), chances are you are sending out a 1099-MISC to that someone—with a copy to the IRS. It has been around for ages, but since 2020, it got a reduced role, with the pay for non-employees moving away to Form 1099-NEC.

How Does Form 1099-MISC Work?

Here’s the rundown on how it plays out:

• Who Files: If you’re in a trade or business and paid someone $600+ for rent, royalties, medical payments, or other listed categories—or $5,000+ for direct sales of consumer products for resale—you file Form 1099-MISC. Payments to corporations usually don’t count, except for medical or legal fees.
• What’s Reported: You fill in boxes for specific payments—like Box 1 for rent or Box 3 for prizes—along with the recipient’s name, address, and Taxpayer Identification Number (TIN). Backup withholding (Box 4) goes in if you held back taxes (e.g., no TIN provided).
• Filing Process: Send Copy B to the recipient by January 31, 2026, for 2025 payments. File Copy A with the IRS by February 28, 2026 (paper) or March 31, 2026 (electronic). Got 10+ returns? E-file only, per IRS rules. Use Form 1096 to summarize if mailing.
• Recipient’s Role: They use it to report income on their taxes, even if you forget to send it—ignorance isn’t a free pass!

It’s five copies total: A for the IRS, 1 for state (if needed), B and 2 for the recipient, and C for your records.

Key Details for Form 1099-MISC

• Payments Covered: Includes $600+ for rent (e.g., office space), prizes/awards, medical payments, attorney gross proceeds (Box 10), or fishing boat proceeds (Box 5); $10+ for royalties; $5,000+ for direct consumer product sales (Box 7).
• Exclusions: Don’t report credit card payments (Form 1099-K), employee wages (W-2), or non-employee compensation (1099-NEC). Real estate agents report rent to owners here, not tenants.
• TIN Matching: Check the recipient’s TIN via Zenwork’s Tax1099 to avoid backup withholding (28% in 2025) or penalties. Use Form W-9 to collect it upfront.
• Deadlines: Recipient copy by January 31; IRS filing by February 28 (paper) or March 31 (e-file). For Boxes 8 or 10 only? February 15 for sharing the recipient copies.

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