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How to complete IRS Form 1099-MISC

IRS Form 1099-MISC is used to report miscellaneous income of $600 or more which is received by individuals or companies in non-employee service payments. The income shown on Form 1099-MISC is taxable. Form 1099-MISC is by far the most popular of the 1099 forms. Its also one of the more detailed forms prompting the payer to fill out up to 16 boxes of data.

The first part of Form 1099-MISC shows the payer name, address, phone number and taxpayer identification number (TIN). This is followed by the recipient name address and TIN.

Then the account number is filled out. If you are submitting more than 250 records, then you want to established a unique account number for each recipient. You don’t want to use any part of the recipient’s SSN as the account number so that you don’t compromise the SSN in any way.

The box “2nd TIN not.” is checked to indicate notification by the IRS within 3 calendar years that the payee provided an incorrect name and/or TIN combination. You can check whether the payee name matches up with the TIN that they provided but using the IRS Bulk TIN matching service. If the name/TIN does not match, keep following up with the recipient. You can run TIN matching as often as you like to verify whether the TIN matches the name.

The next 16 boxes may or may not apply to the recipient that you are working with. Many of these boxes will be blank; fill in only the boxes that apply.

Box 1. Reports rents.

Box 2. Reports royalties.

Box 3. Reports other income.

Box 4. Reports federal income tax withheld.

Box 5. Reports fishing boat proceeds.

Box 6. Reports medical and health care payments.

Box 7. Reports non-employee compensation.

Box 8. Reports substitute payments in lieu of dividends or interest.

Box 9. Is checked if the payment made direct sales of $5,000 or more of consumer products to a buyer for resale.

Box 10. Reports crop insurance proceeds.

Box 11 and Box 12 are grey filled and should be left blank.

Box 13. Reports excess golden parachute payments.

Box 14. Report gross proceeds paid to an attorney.

Box 15a. Reports section 409a deferrals.

Box 15b. Reports section 409a income.

Box 16. Reports state tax withheld.

Box 17. Reports state/payer’s state number.

Box 18. Reports state income.

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Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

If you have any questions or comments about our software, feel free to contact us at any time.

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