If you’re a business owner, property manager, or accountant, understanding when to use Form 1099-MISC is essential to staying IRS compliant. While the 1099-NEC is now the standard for reporting nonemployee compensation, the 1099-MISC still plays an important role in reporting various other types of payments.
In this blog, we’ll explain what the 1099-MISC is, who must file it, when it’s required, and how to file it correctly without getting penalized.
🧾 What Is Form 1099-MISC?
Form 1099-MISC is used to report miscellaneous income paid to individuals or businesses that are not your employees. Before tax year 2020, this form also included nonemployee compensation (which has since moved to the 1099-NEC). Today, 1099-MISC is still used to report things like:
- Rent payments
- Royalties
- Prizes and awards
- Medical and healthcare payments
- Crop insurance proceeds
- Attorney fees (in certain situations)
It’s a catch-all form for many other types of reportable payments.
✅ When Is 1099-MISC Required?
You must file a 1099-MISC if you’ve paid $600 or more in the calendar year to an individual or business not incorporated (with some exceptions) for any of the following:
1. Rent (Box 1)
If you rent office space, equipment, or land from a non-corporate landlord, and pay $600+ during the year.
2. Royalties (Box 2)
You must report royalty payments if they exceed $10, including those for intellectual property or oil and gas rights.
3. Prizes and Awards (Box 3)
Cash prizes and non-employee awards given for services or performance should be reported if over $600.
4. Medical Payments (Box 6)
Payments made to doctors, clinics, or hospitals (even if they are corporations), must be reported if they total $600 or more.
5. Attorney Payments (Box 10)
Gross payments made to attorneys, including settlements, require a 1099-MISC if they total $600 or more.
🚫 When You Should NOT Use 1099-MISC
- Nonemployee compensation (use Form 1099-NEC)
- Personal payments not related to business
- Payments to corporations (except for medical/attorney fees)
- Employee wages (use a W-2 instead)
📅 Important Deadlines
Action | Due Date — | — Send 1099-MISC to recipient | January 31 File with IRS (paper) | February 28 File with IRS (e-file) | March 31
Mistakes can be costly — don’t wait until the last minute.
🧠 Wrap-Up: Know When to File 1099-MISC
While the 1099-MISC isn’t used for contractor payments anymore, it’s still a critical part of IRS reporting for businesses. If your business pays rent, royalties, medical providers, or other miscellaneous income to non-corporations, understanding when and how to file this form will keep you compliant and avoid unwanted fines.
Need help filing 1099-MISC forms online? eFileMy1099.com makes it simple, fast, and secure — even if you’re submitting hundreds of forms.
