Do I Need to File a 1099?

If, in the course of your trade or business, you pay a non-employee $600 or more in a calendar year – including payments for parts, materials, and supplies – you need to file a form 1099-MISC with the IRS to report the payments made. You are also required to file a form 1099-MISC if you withheld any federal income tax for the non-employee, even if the total payment amount was less than $600. Non-employee payment amounts are generally reported in box 7. Whether you file electronically or by paper, your due date to report non-employee compensation is January 31.

You may also need to file form 1099-MISC for each person to whom you paid $600 or more for

  • Rents – box 1
  • Prizes, awards, and other payments – box 3
  • Medical & health care payments – box 6
  • Crop insurance proceeds – box 10
  • Cash payments for fish purchased from a commercial fisherman – box 7
  • Fishing boat proceeds – box 5
  • Payments to an attorney – box 7 or 14

Also use form 1099-MISC to report royalty payments of $10 or more.

In most cases businesses that utilize non-employee labor will file form 1099-MISC to report payments made to each person. However, there are 17 different 1099 forms in use by the IRS:

FormWhat to ReportAmount to ReportDue to IRSDue to Recipient
1099-AAcquisition or abandonment of secured propertyAll amounts28-Feb31-Jan
1099-BProceeds from brokering and barteringAll amounts28-Feb15-Feb
1099-CCancellation of deb$600 or more28-Feb31-Jan
1099-CAPChanges in corporate control and capital structure$1,000 or more28-Feb31-Jan
1099-DIVDividends and distributions$10 or more / $600 or more for liquidations28-Feb31-Jan
1099-GGovernment payments $10 or more for refunds or unemployment28-Feb31-Jan
1099-INTInterest incomeGenerally $10 or more28-Feb31-Jan
1099-KPayment card and 3rd party network transactionsAll amounts28-Feb31-Jan
1099-LTCLong-term care and accelerated death benefitsAll amounts28-Feb31-Jan
1099-MISCPayments made to non-employees, including payments for parts, materials, and supplies$600 or more31-Jan31-Jan
1099-OIDOriginal issue discount$10 or more28-Feb31-Jan
1099-PATRTaxable distributions received from cooperatives$10 or more28-Feb31-Jan
1099-QPayments from qualified education programsAll amounts28-Feb31-Jan
1099-QADistributions from ABLE accountsAll amounts28-Feb31-Jan
1099-RDistributions from pensions, annuities, retirement or profit-sharing plans, IRSs, insurance contracts and so forth$600 or more28-Feb31-Jan
1099-SProceeds from real estate transactions$600 or more28-Feb15-Feb
1099-SADistributions from an HAS, Archer MSA or Medicare Advantage MSAAll amounts28-Feb31-Jan

Sometimes confusion arises whether a business should file a form 1099-MISC or 1099-K. In most cases a business files a 1099-MISC to report payments to non-employees; the 1099-K is a special information return used primarily by banks and payment card processors:

  1099 MISC 1099-K
When would you send a form?Use to report non-employee income for individuals such as freelancers or independent contractorsUse to report payment card and 3rd party network transactions - generally banks and businesses that have contractual obligations to settle payments of card transactions
Thresholds for reporting$600 or moreFor payment card transactions, all amounts.

For 3rd party network transactions, payments greater than $20,000 and 200 or more transactions
Who receives statement?IndividualsCorporations, non-profit entities, and so forth
What amount is reportedAll payments made to the non-employee including payment for services, parts, materials, sub-contracted work, and so forth.Gross amounts

Any payments you make to a non-employee with a credit card or other payment card is excluded from amounts you report on form 1099-MISC. It is the responsibility of the settlement entity (i.e. the bank or card processing organization) to report such payments on form 1099-K.