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.