Form 1099-MISC, Miscellaneous Income
Form 1099-MISC, Miscellaneous Income, is used to report payments for services performed for a business by people not treated as its employees, such as payments to subcontractors, rent payments or prizes. A 1099-MISC Form must be provided to the recipient and a copy mailed to or e-filed with the IRS.
Form 1099- MISC Flow
Use the following flow diagram to learn more about the filing process & the various due dates for each filing requirement.
Subcontractors, Rental Payments or Prize
Depends on each state
Due Dates for Tax Year 2015
*Provide 2015 Form 1099 to all Recipients
Paper Filing Deadline to send the 2015 Form 1099
E-file Deadline for 2015 IRS
*Form 1099 MISC recipient copy due date is extended to February 16, 2016, if you are reporting payments in boxes 8 or 14.
Who needs to file Form 1099-MISC?
File Form 1099-MISC (Miscellaneous Income) for each person to whom a payer paid during the year:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
- At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
- Any fishing boat proceeds
- Gross proceeds of $600 or more paid to an attorney, or
- Withheld federal income tax under the backup withholding rules regardless of the amount of the payment.
One must also file Form 1099-MISC if at least $5,000 of consumer products were sold to a buyer for resale anywhere other than a permanent retail establishment.
Where do I file Form 1099-MISC?
If you are filing 250 or more returns you are required to file electronically. However, the IRS encourages you to file electronically even if you are filing less than 250 returns. ExpressTaxFilings.com is the easiest way to file - we transmit everything to the IRS for you! Or, you can print paper copies and mail them to the IRS and your recipients. Find the mailing address and other detailed Form 1099-MISC information at https://www.irs.gov/pub/irs-pdf/f1099msc.pdf
Steps to E-file Form 1099-MISC
- Sign in to your account
- Select to start a new 1099-MISC
- Select payer details (Name, EIN, Address)
- Select a recipient (Name, SSN/EIN, Address)
- Enter federal details for miscellaneous income Including Boxes 1-10 of Form 1099-MISC
- Enter state information & state taxes withheld for each applicable state
- Review your order & select whether you would like the Form mailed to the recipient
- Add a credit card for the filing fee
- E-file the Form 1099-MISC with the IRS
Have a lot of 1099-MISC forms to send out?
Use our "Bulk Upload" feature to upload an Excel/CSV file to create 1099-MISC forms in minutes. You can download our Excel template or use your own customized template for this.
Check out our video on how to Bulk Upload 1099-MISC forms!
Penalties for failing to file Form 1099-MISC
If you fail to file a correct information return by the due date and you cannot show reasonable cause, you may be subject to a penalty. The penalty applies if you fail to file timely, you fail to include all information required to be shown on a return, or you include incorrect information on a return.
The penalty also applies if you file on paper when you were required to file electronically, you report an incorrect TIN or fail to report a TIN, or you fail to file paper forms that are machine readable.
The amount of the penalty is based on when you file the correct information return. The penalty is:
- $30 per information return if you correctly file within 30 days (by March 30 if the due date is February 29); maximum penalty $250,000 per year ($75,000 for small businesses*).
- $60 per information return if you correctly file more than 30 days after the due date but by August 1; maximum penalty $500,000 per year ($200,000 for small businesses*).
- $100 per information return if you file after August 1 or you do not file required information returns; maximum penalty $1,500,000 per year ($500,000 for small businesses*).
*Small businesses—lower maximum penalties. You are a small business if your average annual gross receipts for the 3 most recent tax years (or for the period you were in existence, if shorter) ending before the calendar year in which the information returns were due are $5 million or less.