When should I receive my 1099-MISC?

Payers must send Form 1099-MISC by January 31 if reporting amounts in Boxes 8 or 10, or by February 15 for other boxes.

Is income on 1099-MISC subject to self-employment tax?

Generally no. Most income reported on 1099-MISC (rents, royalties, prizes) is not subject to self-employment tax. Nonemployee compensation, which would trigger SE tax, is now reported on 1099-NEC.

Do I report 1099-MISC income if I'm an employee?

If you received a 1099-MISC for work done as an employee, contact the payer. They may need to issue a W-2 instead. If you cannot resolve it, report the income and file Form SS-8 to request the IRS determine your worker status.

What if the amount on my 1099-MISC is wrong?

Contact the payer and request a corrected form. If you cannot get a correction, report the correct amount on your return and keep documentation to support the difference.

Income

1099-MISC: Miscellaneous Information

Reports miscellaneous income including rents, royalties, prizes, awards, and other payments.

Download 1099-MISC PDF About on IRS.gov Instructions PDF

Overview

Form 1099-MISC, Miscellaneous Information, is used to report various types of income that don't fit into other 1099 categories. Prior to tax year 2020, this form was also used to report nonemployee compensation, but that income is now reported on Form 1099-NEC.

Today, Form 1099-MISC primarily reports rents, royalties, prizes and awards, fishing boat proceeds, medical and health care payments, crop insurance proceeds, payments to attorneys, and certain other types of miscellaneous income. The form is issued when $600 or more is paid during the tax year (with some exceptions).

If you receive a 1099-MISC, it's important to understand which box your income appears in, as different types of income are reported on different lines of your tax return and may be subject to different tax treatment.

Who Files This Form?

Any person or business that makes payments of $600 or more in rents, prizes, awards, medical and health care payments, or other miscellaneous income during the tax year must file Form 1099-MISC. The threshold is $10 or more for royalties and broker payments in lieu of dividends or tax-exempt interest.

Common filers include businesses paying rent to landlords, companies making royalty payments to authors or inventors, organizations awarding prizes, and entities making payments to attorneys. As a recipient, you use the 1099-MISC to report the income on the appropriate schedule of your tax return.

Key Fields

Box 1: Rents

Payments of $600 or more for renting office space, equipment, or other property. Reported on Schedule E or Schedule C depending on the nature of the rental activity.

Box 2: Royalties

Royalty payments of $10 or more from oil, gas, minerals, patents, copyrights, or other intellectual property. Typically reported on Schedule E.

Box 3: Other income

Prizes, awards, and other taxable income not covered by other boxes. Reported on Schedule 1, Line 8z.

Box 4: Federal income tax withheld

Any backup withholding deducted from your payments. Credited on Form 1040, Line 25b.

Box 6: Medical and health care payments

Payments to physicians, suppliers of health and medical services, or other health care providers.

Box 10: Crop insurance proceeds

Crop insurance payments of $600 or more. Reported on Schedule F for farmers.

Box 14: Gross proceeds paid to an attorney

Payments of $600 or more to attorneys for legal services, even if paid to the attorney's firm.

Filing Deadlines

Due Date

January 31

Late Filing Penalty

Penalties range from $60 to $310 per form for late filing.

Step-by-Step Instructions

1
Receive your 1099-MISC by January 31 and verify that your name, address, and taxpayer ID are correct.
2
Identify which box or boxes contain income. Different boxes are reported on different parts of your tax return.
3
For rental income (Box 1), report on Schedule E if it's a passive rental activity, or Schedule C if you are in the business of renting property.
4
For royalties (Box 2), report on Schedule E, Supplemental Income, Part I.
5
For prizes, awards, and other income (Box 3), report on Schedule 1, Line 8z.
6
If federal tax was withheld (Box 4), include this on Form 1040, Line 25b to receive credit for taxes already paid.
7
Keep your 1099-MISC with your tax records for at least 3 years.

Common Mistakes to Avoid

Confusing 1099-MISC with 1099-NEC

Since 2020, nonemployee compensation is reported on Form 1099-NEC, not 1099-MISC. If you're an independent contractor, look for Form 1099-NEC.

Reporting rental income on the wrong schedule

Passive rental income goes on Schedule E. If you are a real estate professional or provide substantial services, it may go on Schedule C.

Not reporting income if no 1099-MISC was received

You must report all income regardless of whether you received a 1099-MISC. The payer may not have met the $600 filing threshold.

Missing the backup withholding credit

If Box 4 has an amount, don't forget to claim credit for this withholding on your Form 1040.

Frequently Asked Questions

Form 1099-NEC reports nonemployee compensation (freelance/contractor payments). Form 1099-MISC reports other types of income like rents, royalties, prizes, and payments to attorneys.

Related Forms

1099-NEC

Nonemployee Compensation

1099-K

Payment Card and Third-Party Network Transactions

Form 1040

U.S. Individual Income Tax Return

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