Resources:
- Form 1099-MISC, Miscellaneous Income (IRS Summary)
- 2013 Form 1099-MISC
- Instructions for 2013 Form 1099-MISC
Why YOU Should Care:
A Form 1099-MISC lists miscellaneous income – usually non-employee compensation or royalties – earned throughout the year. They are largely informational – they let the IRS know how much income to expect on the tax returns of the recipients. If you owe someone a Forms 1099-MISC for work performed in 2013, they are due on January 31, 2014.
Who Gets a Form 1099-MISC?
Per the IRS, you are required to issue a Form 1099-MISC to everyone you paid:
- “At least $10 in royalties
- At least $600 in rents, services (including parts and materials), prizes and awards, [0r] other income payments …
in the course of trade or business.”
It is crucial to keep accurate records throughout the year to ensure you know if you’ve met the limits.
Who DOES NOT Get a Form 1099-MISC?
There are certain payments that do not require a Form 1099-MISC, such as:
- Most payments to corporations
- Payments for merchandise (e.g., supplies you purchase at the craft store), freight, storage, and/or telephone service
- Rent paid to real estate agents
- Wages paid to employees (those go on a Form W-2)
Remember:
- Even if a 1099-MISC is not issued (properly or not) you are still required to claim all relevant income for the year.
- To gather all the information you need to issue a Form 1099-MISC, use the Form W-9.
