Manage all your Form 1099-MISC reporting from one place.

What Is Form 1099-MISC?

Form 1099-MISC is the IRS information return that is used for reporting miscellaneous payments made in the course of a trade or business.

The form covers a wider range of payment types compared to other information returns. When a business makes reportable payments such as rent, prizes and awards, royalties, medical expenses, attorney proceeds, or other reportable amounts, this is the form the IRS expects you to file.

Form 1099-MISC reports payment categories that do not belong on Form 1099-NEC, Form 1099-INT, or other information returns.

Who Must File Form 1099-MISC?

The filing obligation for Form 1099-MISC extends beyond for-profit companies. The following entities are all subject to 1099-MISC reporting rules when they make qualifying payments:

• Individuals/sole proprietors engaged in a trade or business
• Corporations
• Partnerships
• Estates and Trusts
• Nonprofit organizations
• Government agencies
• Tax-exempt organizations under Sections 501(c) or 501(d)
• Trusts of qualified pension or profit-sharing plans
• Farmers' cooperatives exempt under Section 521
• Widely held fixed investment trusts.

What Payments Must Be Reported on Form 1099-MISC?

Form 1099-MISC covers multiple payment categories, each with its own reporting threshold.

At least $10 in:

• Royalties
• Substitute dividends and tax-exempt interest payments reportable by brokers

At least $2,000 in:

• Rents
• Prizes and awards that are not paid for services
• Other income payments
• Medical and health care payments
• Crop insurance proceeds
• Section 409A deferrals or nonqualified deferred compensation

At least $600 in:

• Cash payments for fish purchased for resale
• Gross proceeds paid to an attorney

All amounts of:

• Fishing boat proceeds paid to crew members

Other reportable categories:

• Direct sales of $5,000 or more of consumer products to a recipient for resale
• Payments that are subject to backup withholding, even when below the normal reporting threshold

What Are the Exceptions to Form 1099-MISC Filing?

Some payments are not reportable on Form 1099-MISC, even when they are taxable to the recipient. These exceptions include:

• Payments to a corporation, unless a specific exception applies (such as medical payments or gross proceeds paid to attorneys)
• Payments for merchandise, freight, storage, and similar items
• Rent payments made to real estate agents or property managers, who then pay the rent to the property owner
• Wages paid and business travel allowances paid to employees. This belongs on Form W-2
• Military differential wage payments to employees on active duty (also reported on Form W-2)
• The cost of current life insurance protection, reportable on Form W-2 or Form 1099-R
• Payments to tax-exempt organizations, including IRAs, HSAs, the United States, a state, the District of Columbia, a U.S. territory, or a foreign government

What's New in Form 1099-MISC for the 2026 Tax Year?

OBBBA threshold update

Certain Form 1099-MISC payments now have a $2,000 threshold for payments paid after December 31, 2025. This affects categories like rents, prizes, other income, medical payments, and crop insurance proceeds. The threshold may be adjusted for inflation starting in calendar year 2027.

New boxes for tips and overtime

The 2026 Form 1099-MISC revision added new reporting fields for cash tips (Box 13a), Treasury Tipped Occupation Code(s) (Box 13b), and overtime compensation (Box 14).

IRIS is replacing FIRE

IRIS is going to replace FIRE as the sole IRS electronic intake system for information returns. This transition starts with the filing season 2027 for payments reported in 2026TY.

Key Boxes on Form 1099-MISC

Each box on Form 1099-MISC corresponds to a specific reportable payment category.

Box 1: Rents

Box 1 reports rent payments for office space, equipment, farmland, pasture, and other property. The rental payment has to be paid in the course of a trade or business. For the 2026 tax year, these payments are reportable only if they are at least $2,000.

Example: A company that pays $30,000 in office rent for a year directly to the building owner must report the payment in Box 1.

Box 2: Royalties

Box 2 reports gross royalty payments of $10 or more. This includes royalties from copyrights, patents, books, music, oil, gas, and mineral properties. For mineral royalties, report the payment before deducting severance taxes or other expenses. Surface royalties belong in Box 1 as rent, not in Box 2.

Example: If a publisher pays an author $4,500 in book royalties, the publisher has to report that amount in Box 2.

Box 3: Other Income

Box 3 handles taxable payments of $2,000 or more that do not fit in any other box on this form. This includes prizes and awards not paid for services, certain taxable damages, certain payments to a deceased employee's estate, and certain gaming distributions to tribal members.

Example: When a business runs a promotional contest and awards a $5,000 cash prize to a customer, the winning amount is reported in Box 3.

Box 4: Federal Income Tax Withheld

Box 4 reports federal income tax withheld when the recipient did not provide a valid TIN or was otherwise notified by the IRS.

Example: A business issues a $1,000 reportable payment to a recipient who is subject to backup withholding. The business withholds $240 and reports that withheld amount in Box 4.

Box 6: Medical and Health Care Payments

Box 6 reports payments of $2,000 or more to physicians, hospitals, clinics, laboratories, health care providers, and medical suppliers for drugs, medical supplies, and related treatment costs bundled with the service. Unlike most other 1099-MISC categories, medical payments are reportable even when made to a corporation.

Example: If an insurance company had to pay a medical clinic $25,000 for patient care, the company would have to report the amount paid in Box 6.

Box 8: Substitute Payments in Lieu of Dividends or Tax-Exempt Interest

Box 8 reports substitute payments of $10 or more received by a broker for a customer in place of dividends or tax-exempt interest.

Example: If a broker gets a $600 substitute dividend for a customer while shares are on loan, it is reported in Box 8.

Box 10: Gross Proceeds Paid to an Attorney

Box 10 reports gross proceeds of $600 or more paid to an attorney for their legal services, when the payment is not for the attorney's own services, like settlement payments. The full amount paid to the attorney is reportable, even if part of it will later be transferred to the client.

Example: An insurance company issues a $100,000 settlement check to a claimant's attorney. The entire settlement amount goes in Box 10 on the form issued to the attorney.

Box 13–14: Tips and overtime (2026 updates)

These boxes are based on the reporting changes introduced for the 2026 tax year. Box 13a reports the total cash tips received by the employee. Box 13b reports the applicable occupation code, and Box 14 reports qualified overtime compensation.

Boxes 16 through 18: State Filing Details

These boxes support state-level reporting for up to two states on a single form:

• Box 16: State tax withheld
• Box 17: State abbreviation and payer's state identification number
• Box 18: State income