Filing Form 1099-MISC with the Internal Revenue Service has not changed significantly in the past several years. Complete and file 1099-MISC forms with the IRS using the following guide.
Box 1 – Report rent figures of $600 or more that anyone pays you. These may include renting for office space, machinery, farmland, or pasture.
Box 2 – Report $10 or more of royalties (e.g.: copyrights, patents, trademarks) that you receive.
Box 3 – Enter additional, unrelated income of $600 or more (e.g.: monetary prizes or awards).
Box 4 – Input the figure withheld for an individual who has not provided a TIN. Use the box to report anyone who is subject to backup withholding.
Box 7 – Enter an “X” if you made direct sales of consumer products valued at $5,000 or more. Do not enter a dollar figure when you file a 1099-MISC with the IRS.
There are certain exceptions now for when you should use Form 1099-MISC. Employers report non-employee compensation of $600 or more on Form 1099-NEC for 2020 or later. Review the back of physical 1099-MISC forms if you need a description of what each box represents.