Form 1099-MISC FAQs
Answers to common questions
Who must have a 1099-MISC form?
The IRS requires businesses to file a copy of the 1099 form with them and mail another copy directly to the independent contractor, so that the IRS can predict how much tax revenue to expect from self-employed individuals. The IRS also stipulates that a business is responsible for sending a 1099-MISC form when someone provides: rents, services (including parts and materials), prizes and awards, or other income payments.
When must a 1099-MISC be sent to contractors?
The forms must reach the independent contractors who worked for you by January 31 of the year after they provided services.
Do contractors receive a 1099-MISC for all payments?
Under the threshold limit of $600, you are not required to mail a 1099-MISC form to independent contractors who did work for your company.
Do I send 1099-MISC forms to businesses that I pay?
Incorporated businesses — i.e., businesses that are legally considered separate entities and that file taxes as such — do not receive 1099-MISC forms. Neither do limited liability corporations (LLCs) that elect to be treated as corporations for tax purposes.
How do I file Form 1099-MISC?
The 1099-MISC Form generally includes: 1. Your name, address and taxpayer ID number 2. The name, address and taxpayer ID number of the company or individual who issued the form 3. The amount of income paid to you during the year in the appropriate box, based on the type of income you received 4. The amount of federal or state income tax withheld on that income, if any
How is Form 1099-MISC different from a W-2 form?
Independent contractors are issued a 1099-MISC form. Employees are issued W-2 forms.
Where do I mail 1099-MISC forms to the IRS?
You mail 1099-MISC forms to one of three different IRS locations, depending on your principal business location. To find the correct address, see the IRS General Instructions for Informational Returns, Section D.
Where do I report 1099-MISC income on my tax return?
Income on a 1099-MISC form is added to other sources of income on your Form 1040, personal tax return. You must pay taxes on all income received, whether or not you receive a 1099-MISC form.
Can I create Form 1099-MISC online?
The easiest way to correctly complete and verify the Form 1099 MISC is to use special services like Form Pros. It does not require the installation of additional software, and it saves you time and money.
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