1099 Instructions

Forms 1099 are information returns used for different kinds of payments made to individuals and businesses. There are about twenty variations of Forms 1099 which are identified a short code followed by “1099”.

For example, Nonemployee Compensation is reported using Form 1099-NEC. The most commonly used Form 1099 is the MISC – which reports miscellaneous income paid to an individual or business. This is the tax form that most businesses use to report income paid to freelancers and contractors. Although Form 1099-NEC is the better fit, Form 1099-MISC has plenty of other uses.

In this article, we’ll give the instructions to file the most commonly used Form 1099 – Form 1099-MISC.

Form 1099-MISC Instructions to File (paper)

First and foremost, individuals and businesses are obligated to file Form 1099-MISC in following types of payments.

At least $10 in:

  • Broker payments in lieu of dividends or tax-exempt interest
  • Royalties

At least $600 in:

  • Payments to nonemployees
  • Rents
  • Prizes and awards
  • Medical and health care payments
  • Crop insurance proceeds
  • Cash payments for fish
  • Payments to an attorney
  • Fishing boat proceeds

Form 1099-MISC is laid out very simply. The filers of Form 1099-MISC can simply file a copy by entering the correct money amount on the corresponding box. There are a total of 17 boxes on Form 1099-MISC. Each box other than the ones that report certain information such as the federal/state/local income taxes withheld, state/local government name, etc. represents a certain type of payment.

Filing it with Form 1096

Form 1099-MISC, just like the other variations of the form and information returns like it, must be sent to the Internal Revenue Service with Form 1096. Individuals and businesses who filed certain information returns. It isn’t necessary to file Form 1096 for every information return filed but for each type of information return. For example, if you’ve filed a total of 10 Forms 1099-MISC, 5 Forms 1099-NEC, and 2 Forms W-2G, a total of three Forms 1096 needs to be filed. That said, file Form 1096 for each types of information return filed.

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