Form 1099-Misc

What is 'Form 1099-Misc'

Form 1099-Misc is a tax form that reports the year-end summary of all non-employee compensation. The 1099-Misc form covers rent, royalties, self-employment and independent contractor income, crop insurance proceeds and several other kinds of miscellaneous income.

BREAKING DOWN 'Form 1099-Misc'

Any client or employer that pays a freelancer or independent contractor at least $600 during the year must issue a 1099-Misc to him or her by January 31 of the following year. Amounts paid for employee compensation such as wages will not be reported on Form 1099-Misc, but on Form W-2.

RELATED TERMS
  1. IRS Publication 51

    A document published by the Internal Revenue Service that provides ...
  2. Self-Employed Person

    An independent contractor or sole proprietor who reports income ...
  3. Self-Employed

    A situation in which an individual works for himself or herself ...
  4. IRS Publication 15-B - Employer's ...

    A document published by the Internal Revenue Service that provides ...
  5. Self-Employment Tax

    Money that a small business owner must pay to the federal government ...
  6. Form 1099-DIV

    A form sent to investors by investment fund companies. The form ...
Related Articles
  1. Personal Finance

    The Purpose Of The W-9 Form

    Businesses use IRS form W-9 to gather information from vendors they hire as independent contractors.
  2. Personal Finance

    The Ultimate Tax-Time Checklist

    Find out what information you need to pull together before filling out your return.
  3. Personal Finance

    Tax Tips For First-Time Filers

    Here is a quick rundown on what you need to know if you're filing your taxes for the first time.
  4. Personal Finance

    What To Bring To The Tax Man

    Forgetting these forms can cost you your refund.
  5. Personal Finance

    10 Things You Should Know About 1099s

    Independent contractors receive 1099 forms, rather than W-2s, as a record of income earned. Here are 10 important things to know about 1099 forms.
  6. Personal Finance

    10 Things You Should Know About 1099s

    They're arriving in the mail now. Don't ignore them, or you could be buying trouble with the IRS.
  7. Retirement

    Employers: Don't Forget IRS Form 941

    Your obligations as an employer include various employment taxes. Use this form to report them.
  8. Personal Finance

    Tips For Dealing With A Renovations Contractor

    It pays to take the time and choose the right contractor for your next big home renovation project.
  9. Personal Finance

    6 Tax Forms for Investors Who Have Money Abroad

    If you're a U.S. citizen or resident, and you own assets in other countries, you might need to file these six forms with the government.
  10. Personal Finance

    5 Sources Of Income You Aren't Claiming - But Should

    There are many types of taxable benefits that you may receive on a regular basis on which Uncle Sam wants to take his share.
RELATED FAQS
  1. Who's required to fill out a Schedule C IRS form?

    Find out if you're required to use a IRS Schedule C form when completing your tax return this year. Read Answer >>
  2. What is IRS Form W-2 used for?

    Any employer who pays an employee $600 or more for the year, including noncash forms of remuneration, must file a form W-2 ... Read Answer >>
  3. How do I determine what to pay in taxes if my employer doesn't withhold payroll taxes?

    If your employer doesn't withhold payroll taxes, you'll need to know these points to know how much to pay in income tax. ... Read Answer >>
  4. Do I have to declare a $5,000 death benefit (life insurance policy) I received upon ...

    Is there a form I need to fill out? ... Read Answer >>
  5. Can I distribute a dividend and reduce the ordinary income reported on my K1?

    I want to shift my income in my S Corporation from ordinary income to dividend Income. ... Read Answer >>
  6. Will my extra earnings go down the drain after taxes?

    I want to take on a part time job to earn an extra $400 a month. I'm afraid my extra earnings may go down the drain after ... Read Answer >>
Trading Center