Form 1099-MISC Instructions, Deadlines & Filing Guide

January 28, 2026 Jennifer Allerson

form 1099 misc how to report miscellaneous income

Table of Contents

What is Form 1099-MISC?
Who Has to File Form 1099-MISC?
1099-MISC Recent Updates
What Information Must be Reported on Form 1099-MISC?
What are the Different Copies of Form 1099-MISC?
When is the Deadline to File Form 1099-MISC?
Are There Any Penalties for Late Filing of 1099-MISC Form?
Is There an Option to Request an Extension for Form 1099-MISC?
How Do You File Form 1099-MISC?
Conclusion
FAQs

Form 1099-MISC is an IRS tax form used to report miscellaneous income such as rent, royalties, prizes, and other payments that are not regular wages. If you’re a freelancer, contractor, or small business owner, you may need to file or report this form to stay tax-compliant and avoid penalties.

Knowing when to use Form 1099-MISC, what income it covers, and how it differs from Form 1099-NEC can help you file correctly and reduce stress during tax season. This guide explains everything you need to know, step by step.

What is Form 1099-MISC?

Form 1099-MISC, short for Miscellaneous Information, is a federal tax form businesses use to report various types of miscellaneous income they’ve paid during the year. Miscellaneous income is defined as payments that don’t fit standard categories like wages or independent contractor services. Think of it as the IRS’s way of tracking payments that don’t fit neatly into other boxes.

The IRS requires businesses to file this form when they make certain payments during the tax year. Most payments totaling $600 or more (or $10 for royalties) trigger the reporting requirement. This includes rent payments, prizes, awards, healthcare payments, and other income categories. If you’re a business owner who pays rent for office space or awards prizes at company events, you’ll likely need to issue Form 1099-MISC to report these payments.

Recipients use the information on Form 1099-MISC to report their income accurately on their tax return. This ensures everyone pays the correct amount of income tax and helps the IRS verify that all taxable income gets reported properly.

How is Form 1099-MISC Different from 1099-NEC?

Many people confuse Form 1099-MISC with Form 1099-NEC (Nonemployee Compensation), but they serve different purposes. The main difference between 1099-MISC and 1099-NEC comes down to what type of payment you’re reporting.

1099-NEC	1099-MISC
Reports nonemployee compensation for services	Reports miscellaneous income not paid for services
Used for payments to independent contractors	Used for payments like rent, royalties, prizes, and awards
Examples: freelance designers, consultants, plumbers	Examples: office rent, royalty payments, contest prizes
Introduced as a separate form in 2020	Refocused in 2020 to exclude contractor payments
Typically filed when payments total $600 or more	Filed at $600+ for most payments or $10+ for royalties

Tip: If you paid someone for doing work as an independent contractor, use 1099-NEC. If you paid them for something else like rent or royalties, use 1099-MISC.

Who Has to File Form 1099-MISC?

You must file Form 1099-MISC if you’re operating a trade or business and you made certain types of payments during the year. The IRS has specific thresholds that trigger the filing requirement. Individuals can issue a 1099 to another individual if they’re operating a trade or business and make qualifying payments.

Before issuing Form 1099-MISC, you’ll typically collect Form W-9 from the recipient. While Form W-9 gathers the recipient’s tax information (name, address, and taxpayer identification number), Form 1099-MISC reports the actual payments made.

You need to file if you paid:

$600 or more in rents
$600 or more in prizes and awards
$600 or more in other income payments
$10 or more in royalties or broker payments
Any fishing boat proceeds
$600 or more to an attorney
$5,000 or more in direct sales of consumer products for resale (check the box; don’t enter an amount)

The 1099-MISC minimum reporting threshold is $600 for most payment types, though royalties require reporting at just $10.

Payments to corporations typically don’t require Form 1099-MISC, with some exceptions. Payments for legal services to attorneys must be reported regardless of whether the attorney operates as a corporation. Medical and healthcare payments also need reporting even when made to corporations. Do partnerships receive Form 1099? Generally yes, unless they’re taxed as corporations.

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1099-MISC Recent Updates

The IRS periodically updates Form 1099-MISC to reflect changes in tax law and reporting requirements. Understanding these recent updates helps ensure you’re filing correctly.

Starting in 2024, businesses filing 10 or more information returns must file electronically. This threshold dropped from the previous requirement of 250 returns, affecting many small businesses that previously filed paper forms. Electronic filing improves accuracy and speeds up processing.

The separation of nonemployee compensation onto Form 1099-NEC, which happened in 2020, remains one of the most significant recent changes. This change means Form 1099-MISC now focuses purely on miscellaneous income types rather than mixing service payments with other income categories.

Box numbers on the form have been reorganized over recent years. If you’re used to older versions of the form, double-check that you’re entering information in the correct boxes on the current year’s form.

What Information Must be Reported on Form 1099-MISC?

Filling out Form 1099-MISC correctly requires specific information about both the payer and recipient. Missing or incorrect information can lead to processing delays and potential penalties.

Payer Information

The payer section requires your business details. You’ll need to provide your business name, address, and Taxpayer Identification Number (TIN), which is typically your Employer Identification Number (EIN) or Social Security Number if you’re a sole proprietor.

Make sure your business name matches exactly what’s on file with the IRS. Your address should be current and complete, including suite numbers if applicable.

Recipient Information

For the recipient section, you need the payee’s name, address, and TIN. Getting accurate recipient information before making payments saves headaches later. Many businesses use Form W-9 to collect this information from vendors and service providers at the start of a business relationship.

Verify names carefully—they should match the recipient’s tax records exactly. Whether the recipient is a vendor or independent contractor, accuracy matters.

Payment Information

The form has specific boxes for different payment types. Box 1 reports rents for office space or equipment. Box 2 reports royalties. Box 3 reports other income, including prizes and awards. Box 7 is for direct sales of $5,000 or more in consumer products sold for resale—this is a checkbox indicator, and you should not enter a dollar amount. Box 3 can also include payments related to Indian gaming profits when tribes make certain distributions. Box 10 reports gross proceeds paid to an attorney. Additional boxes cover fishing boat proceeds, medical payments, and substitute payments.

Enter only the payment amount that applies to each category. Don’t combine different payment types into one box.

An important note about reimbursements: should reimbursements be included on 1099? Generally no. True expense reimbursements that are accountable and supported by documentation should not be included on Form 1099-MISC. However, if reimbursements are included in the gross payment amount or represent taxable income, they may need to be reported.

Tax Withheld

Box 4 shows any federal income tax withheld from the payments. Backup withholding at 24% applies when a recipient fails to provide a TIN or provides an incorrect one. This protects you as the payer from penalties for the recipient’s non-compliance.

Most 1099-MISC payments don’t involve withholding, so this box often remains blank.

Boxes 14-17 handle state tax information. If your state requires state income tax withholding or reporting on these payments, you’ll complete these boxes with the state tax withheld, payer’s state number, and state income amount.

Requirements vary significantly by state. Check your state’s tax authority website for guidance on state-level 1099-MISC reporting.

What are the Different Copies of Form 1099-MISC?

Form 1099-MISC comes in multiple copies, each serving a different purpose in the reporting process. Understanding which copies go where prevents filing mistakes.

Copy	Who Receives It	What It’s Used For
Copy A	IRS	Filed with the IRS to report miscellaneous income. This is the red copy and must be submitted using IRS-approved forms or e-filing software.
Copy 1	State tax department	Sent to the state tax agency if your state requires 1099-MISC reporting. Not all states require this copy.
Copy B	Recipient	Provided to the recipient (vendor or individual paid) to report the income on their federal tax return.
Copy 2	Recipient	Used by the recipient when filing a state tax return, if required.
Copy C	Payer	Kept by the payer for record-keeping. The IRS recommends retaining this copy for at least three years.

When is the Deadline to File Form 1099-MISC?

Filing Form 1099-MISC on time is essential to avoid IRS penalties. Deadlines depend on who receives the form and how you file it.

Form 1099-MISC Filing Deadlines

Deadline	Form	Who Receives It	What You Need to Know
January 31	Copy B	Recipient	Must be delivered to the recipient so they can report the income on their tax return. This deadline applies every year, regardless of how you file with the IRS.
February 28	Copy A (paper filing)	IRS	Deadline if you mail paper forms to the IRS. Include Form 1096 when filing by paper.
March 31	Copy A (electronic filing)	IRS	Deadline if you file electronically. Electronic filing is required for businesses filing 10 or more information returns.

Most commonly missed deadline: Many businesses focus on filing with the IRS and overlook the January 31 deadline for sending Copy B to recipients, even though it comes earlier.

Tip: Mark these dates on your calendar well in advance. Setting up your systems to collect necessary information throughout the year makes meeting these deadlines much easier.

Are There Any Penalties for Late Filing of 1099-MISC Form?

The IRS takes information reporting seriously and assesses penalties for late or incorrect filing. Understanding these penalties motivates timely, accurate compliance.

Penalties depend on how late you file and the size of your business. For 2024, if you file within 30 days after the deadline, the penalty is $60 per form, up to a maximum of $220,500 per year for small businesses.

Filing more than 30 days late but before August 1 increases the penalty to $120 per form, with maximums of $630,500 for small businesses.

Filing after August 1 or not filing at all carries the steepest penalty—$310 per form with maximums of $1,261,000 for small businesses.

Intentional disregard of filing requirements results in even higher penalties—at least $630 per form with no maximum cap.

Beyond monetary penalties, late filing can trigger IRS notices, audits, and additional scrutiny. Understanding your tax liability helps you budget for both taxes and potential penalties.

Is There an Option to Request an Extension for Form 1099-MISC?

Unlike personal tax returns, Form 1099-MISC doesn’t have an automatic extension process. However, you can request additional time to file in specific circumstances.

To request an extension, file Form 8809 (Application for Extension of Time to File Information Returns). This form must be submitted by the original filing deadline—you can’t wait until after the deadline passes.

The IRS grants extensions for valid reasons, not simply because you weren’t prepared. Automatic 30-day extensions are available for certain situations.

Criteria for Requesting Extension for Form 1099-MISC:

Valid reasons for requesting an extension include:

Natural disasters or other catastrophic events that prevent normal business operations. If a flood destroys your records or a hurricane forces your office to close, the IRS recognizes these as legitimate obstacles.

First-time filers who need additional time to understand requirements and gather necessary information.

Undue hardship that prevents timely filing despite good faith efforts. This might include serious illness, death of a person responsible for filing, or unavoidable absence of the person who maintains the records.

The IRS reviews extension requests case-by-case. Submitting Form 8809 doesn’t guarantee approval.

Remember that extensions apply only to filing with the IRS. The January 31 deadline for providing copies to recipients doesn’t change.

How Do You File Form 1099-MISC?

Filing Form 1099-MISC involves several steps, from gathering information to submitting forms to the IRS and recipients. Taking a systematic approach makes the process manageable.

Step 1: Collect recipient information throughout the year. Don’t wait until January to track down vendor addresses and TINs. Use Form W-9 to gather information when you first engage a vendor or service provider.

Step 2: Track payments by category. Your accounting system should categorize payments as rent, royalties, prizes, or other miscellaneous income. Many businesses using invoicing software can track these categories automatically.

Step 3: Determine which payments require reporting. Not every payment needs a 1099-MISC. Review the thresholds and exceptions.

Step 4: Obtain blank forms or use filing software. You can download a sample 1099 form from the IRS website for reference, purchase official forms from office supply stores, or use tax software. If filing 10 or more returns, you must file electronically. You can also download a printable 1099-NEC sample from the same IRS page if you need to compare forms.

Step 5: Complete the forms carefully. Double-check all names, addresses, and TINs. Verify that amounts are accurate and placed in the correct boxes.

Step 6: File with the IRS. Submit Copy A to the IRS by the deadline—February 28 for paper filing or March 31 for electronic filing. Include Form 1096 when filing paper forms.

Step 7: Provide copies to recipients. Mail or deliver Copy B to each recipient by January 31.

Step 8: Retain your records. File Copy C with your business tax records and keep all supporting documentation for at least three years.

For businesses managing multiple contractors and payment types, consider using professional accounting software or working with a tax professional. Understanding how to properly calculate self-employment tax also helps recipients of your 1099-MISC forms prepare for their own tax obligations.