Form 1099-MISC is used to report payments for services performed for a business by people not treated as its employees. Miscellaneous income includes payments made to subcontractors wages, rental payments, prizes, awards, or substitute payments in lieu of dividends. Employers must file Form 1099-MISC for non-employees compensated $600 or more for the year services were rendered. However, if a recipient works for multiple companies and earns a combined total of $600 he or she will not receive a 1099-MISC but will still be required to report income tax. A 1099-MISC Form, reporting miscellaneous income, must be provided to the recipient and a copy e-filed to the IRS.
Due to recipient by:
Paper file 1099-MISC with the IRS by:
E-file 1099-MISC with the IRS by:
Note: February 15 Deadline: for 1099 MISC Form if no amount is reported in box 7 (non-employee compensation) but amount is reported in box 8 (substitute payment in lieu of dividends or interests) or in box 14 (Gross proceeds paid to an attorney).
Depending on your state requirements you may need to file Form 1099-MISC to the applicable state department, along with any additional information. If your state is a part of the Combined Federal/State Filing the Internal Revenue Service: Information Returns Branch (IRS/IRB) will forward the original and corrected forms to the respective state automatically with no additional charge. However, select states within the program still require individuals to file with the state department.Learn More
A penalty will be enforced if the filer fails to file Form 1099-MISC by the deadline, fails to include all required information, if the return contains incorrect information, or if the filer files on paper when required to e-file. Penalty amounts are based on the size of the organization and the date the form is actually filed. These amounts range from $30 to $1,500,000.Learn More
If your Form 1099-MISC is rejected by the IRS, file a new form correcting errors with TaxBandits as soon as possible. In order to correct incorrect recipient details and federal amounts previously filed on Form 1099-MISC simply refile the form and use necessary indicators to mark form as a correction.Learn More
If you’re unable to file Form 1099-MISC on time, you can apply for an automatic 30-day extension of time to file by completing Form 8809 by your original due date. E-file and receive approval within an hour.Learn More