Checkout the information from the following table to know what the each box in Form 1099-MISC represents.

Box Description
Box 1.Rents If your business paid the recipient $600 or more for certain types of rent, like Real estate rentals paid for office space, Machine rentals, & Pasture rentals (other than corporation).
Box 2. Royalties If your business paid gross royalties of $10 or more to the recipient, you might have paid a royalty for use of a patent, copyright, trade name or trademark.
Box 3. Other Income If you paid the recipient $600 or more for something that isn’t covered by one of the other boxes on form 1099-MISC, report it here. including prizes and awards.
Box 4. Federal Income Tax Withheld If the recipient was subject to backup withholding, report the amount your business withheld from their pay in this box.
Box 5. Fishing Boat Proceeds Use it if your business paid someone for catching fish. The share of all proceeds from the sale of a catch or the fair market value of a distribution to each crew member of fishing boats with less than 10 crew members.
Box 6. Medical and Health Care Payments If your business paid $600 or more to medical or health care service providers will be report on Box 6. This is only for payments made in the conduct of business (not things like personal visits). It also includes payments made for insurers under accident, sickness, and health insurance programs.
Box 7. Nonemployee Compensation The total amount of payment more than 600$ for an year to the individual (contractor), who is not treated as your employee.
Box 8. Substitute Payments in Lieu of Dividends or Interest Aggregate payments of at least $10 received by a broker for a customer in lieu of dividends or tax-exempt interest as a result of a loan of a customer's securities.
Box 9. Payer Made Direct Sales of $5,000 or More The amount of direct sales of consumer products, buy-sell or commission. We will report an “X” for any amounts of $5000 or greater.
Box 10. Crop Insurance Proceeds Crop insurance proceeds of $600 or more paid to farmers by insurance companies.
Box 13. Excess Golden Parachute Payments Any excess golden parachute payments. An excess parachute payment is the amount of the excess of any parachute payment over the base amount.
Box 14. Gross Proceeds Paid to an Attorney If your business paid $600 or more to an attorney for legal services, report the amount here.
Box 15a. Section 409A Deferrals Completing this box is optional; if you contributed to a section 409A retirement plan but weren’t an employee.
Box 15b. Section 409A Income If you contributed to a section 409A plan but it didn’t meet specific guidelines, it can be counted as taxable income, and you must input the amount here.
Boxes 16-18. State Information 16 - State tax withheld, 17 - State/Payer’s state no. 18 - State income If your business participates in the combined federal/state filing program and/or is required to file paper copies of form 1099-MISC with a state tax department, complete these boxes. Each is divided horizontally in case you need to report tax liability for two states.

What are the Copies in Form 1099-MISC?

The 1099-MISC is a multi-part form. Here are the parts of this form and where to send each:

  • Copy A is sent to the Internal Revenue Service.
  • Copy B is for the recipient.
  • Copy C is for the payee.
  • Copy 1 is sent to the state tax department(s).
  • Copy 2 is for the recipient to file with his/her state income tax return.

Note: Copies B and 2 must be received by the person no later than January 31 of the year after the tax year.

Don’t worry about the copies when you are here. You just get started with our efile software and we will print and mail the required copies to your recipients on time.

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