1099-MISC Form

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Form 1099-MISC reports payments made to others as part of business activities, not including payments made to employees or for nonemployee compensation. Self-employed individuals may file and receive 1099-MISC forms. Most commonly, form 1099-MISC is used by businesses to report payments for rent, royalties, prizes and awards, substitute payments in lieu of dividends and other items to people.

Prior to tax year 2020, non-employee compensation was reported on form 1099-MISC. If you made certain payments above certain amounts for your trade or business unrelated to nonemployee compensation for the following items, they will need to be reported on Form 1099-MISC:

  • At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
  • At least $600 in:
    • Rent
    • Prizes and awards
    • Other income payments
    • The cash paid from a notional principal contract to an individual, partnership or estate
    • Medical and health care payments
    • Payments to an attorney
    • Section 409A deferrals
    • Nonqualified deferred compensation
  • Form 1099-MISC must also be filed for each person you have withheld any federal income tax under backup withholding rules, regardless of the amount withheld or the amount paid to them.
Notice: River does not provide investment, financial, tax, or legal advice. The information provided is general and illustrative in nature and therefore is not intended to provide, and should not be relied on for, tax advice. We encourage you to consult the appropriate tax professional to understand your personal tax circumstances.