1099-Miscellaneous

1099-MISC is sent to individuals that work for you, such as independent contractors or consultants, but are not employees. Use the information provided by the IRS to fill in the fields on the 1099-Miscellaneous tab. The fields are listed in alphabetical order.

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1099-Miscellaneous

409A deferral

409A income

Direct sales

Crop insurance

Excess golden parachute payments

Federal income tax withheld

Fishing boat proceeds

Gross proceeds paid to an attorney

Medical/health care payments

Nonemployee compensation

Other income

Other information

Rents

Royalties

States

Substitute payments

409A deferral

Use 409A Deferral to enter the yearly deferral and earnings for Section 409A.

409A income

Use 409A Income to enter the amounts includible if the plan fails to satisfy Section 409A.

Direct sales

Use Direct Sales if direct sales were $5,000 or more of consumer goods for resale.

Crop insurance

Use Crop Insurance when crop insurance proceeds paid to farmers by insurance companies of $600 or more.

Excess golden parachute payments

Use Excess Golden Parachute Payments to enter any excess golden parachute payments.

Federal income tax withheld

Use Federal Income Tax Withheld to enter the backup federal income tax withholding. Backup withholding will apply

1. If the payee fails to furnish his or her taxpayer identification number (TIN) to you.

2. For interest dividend, and broker and barter exchange accounts or instruments acquired after 1983, the payee fails to certify, under penalties of perjury, that the TIN provided is correct.

3. The IRS notifies you to impose backup-withholding because the payee furnished an incorrect TIN.

4. For interest and dividend accounts or instruments, you are notified that the payee is subject to backup withholding.

5. For interest and dividend accounts opened or instruments acquired after 1983, the payee fails to certify to you, under penalties of perjury, that he or she is not subject to backup withholding.

Fishing boat proceeds

Use Fishing Boat Proceeds to enter fishing boat proceeds from the sale of the catch.

Gross proceeds paid to an attorney

Use Gross Proceeds Paid to an Attorney to report gross proceeds paid to an attorney in connection with legal services (regardless of whether the services are performed by the payer.)

Medical/health care payments

Use Medical/Health Care Payments to enter medical and health care payments of $600 or more in the course of a trade or business to each physician, or other supplier or provider of medical and health care services, including payments made by medical and health care insurers under health, accident, and sickness insurance programs.

Nonemployee compensation

Use Nonemployee Compensation to enter non-employee compensation payments $600 or more for services performed for a trade or business by people not treated as employees.

Other income

Use Other Income to enter prizes and awards of $600 or more that are not for services rendered, such as winnings on TV or radio shows. Report any payment required to be reported on Form 1099-MISC that should not be reported in one of the other boxes on the form.

Other information

Use Other Information to provide any additional information required by the recipient.

Rents

Use Rents to enter the amounts paid to the recipients for all types of rent $600 or more.

Royalties

Use Royalties to enter gross royalty payments of $10 or more.

States

Use the options on the States tab to enter the state or local income tax withheld from the payments. First, click Add a New State. Then, fill in the Tax Withheld and Income.

Substitute payments

Use Substitute Payments to enter substitutes payments in lieu of dividends. A broker is required to furnish a Form 1099-MISC of payment of $10 or more to affected customers.