Tax Checklist

A 1099-MISC form is used to report miscellaneous income (sometimes called "non-employee income") to the IRS.

It is an annual wage report form meaning that it must be prepared, given to workers, and submitted to the IRS early in the year for the previous tax year.
 

This form is used to record payments to non-employees, including: 

  • Income earned by an independent contractor but not an employee

  • Fees, commissions, rents, or royalties paid

  • Payment for prizes, awards, or legal services

  • Excess golden parachute payments

  • Medical and health care payments
     

If you paid $600 or more to a non-employee or $10 or more in royalties during the year, you must send that person a 1099-MISC showing the total amount you paid for that year.

 

Before a non-employee can receive a 1099-MISC, they must complete a W-9 form(it's similar to a W-4 form that new employees must complete at hire). The W-9 form includes name and address and, most important, the recipient's tax identification number.

 

What are the Deadlines for 1099-MISC Forms? 

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Submitting to Recipients:  The 1099-MISC must be submitted to the payee by January 31st, so they can use the form to prepare their income taxes.

Filing with the IRS: The 1099-MISC must be submitted to the Internal Revenue Service (IRS) by January 31st.