1099 Forms › In-Depth 2024 Guide to 1099 MISC Instructions
Form 1099-MISC Instructions: Line-by-Line
The IRS mandates business owners submit Form 1099-MISC to report various payments made to self-employed individuals for their services. In the 2020 tax year, nonemployee compensation reporting shifted from Form 1099-MISC Box 7 to the newly reactivated Form 1099-NEC. However, Form 1099-MISC is still used to report other miscellaneous payments.
Changes in Form 1099-MISC Instructions for 2023
| Box | Previous | Now |
|---|---|---|
| 13 | Previously used to report excess golden parachute payments | Currently used to indicate the FATCA filing requirement |
| 14 | Previously used to report payment under NQDC plans | Currently used to report excess golden parachute payments |
| 15 | Previously used to report state-withheld taxes | Currently used to report payment under NQDC plans |
| 16 | Previously used to report the payer's state number | Currently used to report state-withheld taxes |
| 17 | Previously used to report state income | Currently used to report the payer's state number |
| 18 | Reserved | Currently used to report state income |
Are there any exemptions to payments reported on Form 1099-MISC?
Indeed, certain situations exempt you from reporting payments on Form 1099-MISC, although they may be taxable to the recipient. These situations include
- Payments made to C or S corporations.
- Paid for merchandise, telegrams, telephone, freight, storage, and similar items.
- You paid tax-exempt organizations.
- Wages, any bonuses, prizes, and awards paid to employees (report these on Form W-2).
- Cost of current life insurance protection (report on Form W-2 or Form 1099-R).
- Payments made to or for homeowners from the HFA Hardest Hit Fund or similar state program (report on Form 1098-MA).
- Scholarships
- Canceled debt
Information to be Filed on Form 1099-MISC
Sections For Entering Payer Information
Complete the Payer Details section. This includes:
- Name
- Address
- Contact phone number
- Tax Identification Number (TIN)
Sections For Entering Recipient Information
Complete the Recipient Details section. This includes:
- TIN
- Name
- Street Address
- City, State, Zip
Amount boxes for Form 1099-MISC
Box 1 Rents
Include the amounts paid for rent (excluding payments to corporations).
Box 2 Royalties
Report any royalty payments of at least $10 from oil, gas, mineral properties, or intellectual property made to individuals during the year.
Box 3 Other Income
Enter $600 or more payments from prizes, awards, or research studies.
Box 4 Federal Income Tax Withholding
Report any taxes withheld under Backup withholding due to incorrect TINs provided. The withheld amounts are related to the payments reported in boxes 1 and 2.
Box 5 Fishing Boat Proceeds
Include the earnings from fishing activities.
Box 6 Medical and Health Care Payments
Document payments made to physicians, suppliers, medical and healthcare services providers, and medical and healthcare insurers under health, accident, and sickness insurance programs However, exclude payments made to pharmacies for prescription drugs.
Box 7 Payer made direct sales totaling $5,000 or more of consumer products to the recipient for resale
Mark this Box if the payer sold consumer products with a total value of $5,000 or more for resale or buy-sell purposes.
Box 8 Substitute Payments In Lieu Of Dividends Or Interest
Enter the total payments of $10 or more made by brokers for dividends or tax-exempt interest as a loan.
Box 9 Crop Insurance Proceeds
Report crop proceeds totaling $600 or more, which were paid to a farmer by an insurance company, except when the farmer has notified the insurer that expenses have been capitalized per sections 447, 263A, or 278.
Box 10 Gross Proceeds Paid to an Attorney
Record the total amount of $600 or more paid to an attorney for legal services.
Box 11 Fish Purchased for Resale
Payers should report the amount spent on fish purchased for resale in this Box.
Box 12 Section 409A Deferrals
Incorporate the current-year deferrals for a nonemployee under a nonqualified deferred compensation (NQDC) plan, subject to section 409A, as any earnings on the current and previous-year deferrals.
Box 13 FATCA Filing Requirement
Check this box if the payer is using Form 1099-MISC to fulfill their Chapter 4 account reporting requirement. Include the payments made to the recipient and any taxes withheld from those payments.
Box 14 Excess Golden Parachute Payments
Report any excess golden parachute payments subject to a 20% excise tax.
Box 15 Nonqualified Deferred Compensation
Record payments made under a nonqualified deferred compensation (NQDC) plan that does not meet the requirements of section 409A. Any reportable payment in Box 12 that is currently taxable should also be included in this Box.
Box 16 - 18 State or Local Income Tax Withheld
Report any state or local income tax withheld from the payments made to the recipient.
To learn more about Form 1099-MISC Instructions, Click here.
What are the 1099 Deadlines for 2024?
-
January 31st, 2024
Recipient Copies
Form 1099s must be distributed to the recipient on or before January 31st
-
February 28th, 2024
-
April 1st, 2024
E-File
Form 1099s must be e-filed directly to the IRS on or before April 1st
Visit our deadlines article to learn more about Form 1099 due dates.
Note: If the filing deadline lands on a Saturday, Sunday, or legal holiday, the due date will automatically be extended to the following business day.
The exception to these deadlines above is for filing Form 1099-NEC. Depending on the filing method, there is a month's advancement on the recipient and IRS copies being January 31st. Get started with BoomTax and file your 1099 with the IRS, state, and mail recipient copies on time. Get Started Now
If you find errors after filing your 1099 return with the IRS, promptly correct the information and submit the corrected Form 1099 and Form 1096 to the IRS. Also, provide your recipient with an updated 1099 showing the updated details. If you need to correct any state or local tax department information, file the form with the appropriate agencies, not the IRS.
Note: Reporting payments solely in boxes 8 or 10, the deadline for providing Copy B to the recipient is February 15th, 2024.
What are the different Form 1099 Copies?
Each Form 1099 has five different copies with their specific purpose:
Copy A
IRS copy for paper filing.
Copy 1
Filed with the State Tax Department.
Copy B
Recipient copy.
Copy 2
Recipient state copy used for state income tax reporting.
Copy C
Payer's copy for their records.
Get started with BoomTax, and file your 1099 tax forms with federal/state and mail recipient copies from one place. BoomTax will never remove past years' filings, and you can continue to make corrections at any time, no matter the year. File my 1099 directly to the IRS Now!
How to file Form 1099-MISC Electronically with the IRS?
File Form 1099-MISC electronically with the IRS and the required state agencies by using BoomTax, an IRS-authorized e-file provider that supports e-filing for all 1099, W2, and ACA Forms.
Import Your Form 1099-MISC Data
You can import your data as Excel, XML, or use files from popular payroll providers like QuickBooks, UKG, ADP, and many more.
Step-By-Step Wizard
We walk you through the process with no complicated jargon. You can also live chat with a real person as you work on your filing for hands-on help.
E-File & Mail Employee Copies
Once your data is loaded, you can e-file and distribute employee copies in minutes.
Filing IRS tax returns doesn't have to be difficult. With the help of an e-file provider, you can easily e-file returns, correct errors, manage, and mail copies to your recipients.
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.
