Form 1099-MISC

What is Form 1099-MISC?

Form 1099-MISC reports miscellaneous income payments to non-employees. Common uses include rent payments to landlords, royalties, prizes, awards, and payments to attorneys. The form is due to recipients by January 31 and filed with the IRS by February 28 (paper) or March 31 (electronic). If you pay $600 or more in reportable categories, you must issue this form.

What moved to Form 1099-NEC

Starting in 2020, nonemployee compensation moved from 1099-MISC Box 7 to the separate Form 1099-NEC. Contractor payments now go on 1099-NEC while rent, royalties, and other miscellaneous payments stay on 1099-MISC. This split means most businesses file both forms for different payment types. Check which form applies to each payment category.

Common filing mistakes

Using the wrong form for contractor payments triggers IRS notices. Missing the January 31 deadline for NEC while meeting the later MISC deadline causes penalties. Failing to collect W-9s before payment creates year-end scrambles. Set up proper processes when you engage vendors, not when forms are due.