IRS Form 1099 MISC Instructions for 2025

• Box 1: Rents

  Report payment of $600 & above paid as rent.

• Box 2: Royalties

  Report any payments over $10 made to an individual for royalties from oil, natural gas, mineral properties, or Intellectual properties (Copyrights and patents) during the tax year.

• Box 3: Other Income

  Report other $600 or more income that is not reportable in one of the other boxes on the form. This includes prizes, research payments, legal settlements, and deceased employee wages. It does not cover wages (Form W-2) or nonemployee compensation (Form 1099-NEC).

• Box 4: Federal income tax withheld

  Backup withholding applies when a payee has not provided a valid TIN, affecting payments in boxes 1, 2, 3, 5, 6, 8, 9, and 10 on Form 1099-MISC. It also includes income tax withheld from tribal gaming revenue distributions.

• Box 5: Fishing Boat Proceeds

  Fishing boat operators must report each crew member’s share of catch proceeds or fair market value if the boat typically has fewer than 10 crew members. Cash payments of up to $100 per trip for extra duties should also be reported, but wages are on Form W-2.

• Box 6: Medical And Health Care Payments

  Report payments of $600 or more made to physicians, medical and health insurance providers, and other
  1099 healthcare service providers, including corporations, except tax-exempt hospitals and government-owned facilities. Payments for prescriptions at pharmacies are not reportable.

• Box 7: Payer made direct sales totaling $5,000 or more of consumer products to the recipient for resale

  Check this box (no dollar amount required) if you made direct sales of $5,000 or more for resale outside a retail store. You can report it on Form 1099-MISC or 1099-NEC, but not both.

• Box 8: Substitute payments in lieu of dividends or interest

  Report average substitute payments of $10 or more made in lieu of dividends or tax-exempt interest for a customer's securities loan. Substitute payments include interest accrued on securities.

• Box 9: Crop insurance proceeds

  Report the crop proceeds of $600 or more paid to a farmer by an insurance company unless the farmer informed the insurance companies that expenses have been capitalized under sections 278, 263A, or 447.

• Box 10: Gross proceeds paid to an attorney

  Report $600 or more paid to attorneys in legal settlements, even if services were performed for another party.

• Box 11: Fish Purchased for Resale

  Report $600 or more in cash payments to fish sellers if you are in the business of purchasing fish for resale.

• Box 12: Section 409A deferrals

  Report current year deferrals of a nonemployee under a nonqualified deferred compensation (NQDC) plan if it is subject to section 409A and any earnings on current and prior year deferrals.

• Box 13: FATCA Filing Requirement

  This box must be checked to confirm FATCA compliance under Chapter 4 of the IRC. U.S. payers and Foreign Financial Institutions (FFIs) use it to report U.S. accounts or elect to report under FATCA, even if no reportable payments were made.

• Box 15: Nonqualified deferred compensation

  Report payments under an NQDC plan that do not meet the requirements of section 409A. Any payment reported in box 12 is taxable and included in this box.

• Box 16 to Box 18: State Information

  Used for state tax reporting, including state tax withheld (Box 16), state name & ID (Box 17), and state payment amount (Box 18).

Click here to learn more about 1099-MISC State Filing Requirements.

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