Miscellaneous Income - Form 1099-MISC
Form 1099-MISC reports various types of miscellaneous income other than wages, salaries, and tips, which are reported on a W-2 instead.
Payments for services (including parts and materials), rents, prizes and awards, proceeds paid to attorneys, medical and health care payments, crop insurance proceeds, and cash payments to fishermen, among others, in excess of $600 made from a business or self-employed person to vendors, subcontractors, independent contractors, and others require a 1099-MISC.
Broker payments and royalties in excess of $10 also require a 1099-MISC.
1099-MISCs must be submitted to both the IRS and the recipient of the payments.
Businesses must provide the recipient with their copy of the 1099-MISC by January 31. They must either mail it to the IRS by February 28 or electronically file it with the IRS by March 31. Increasing penalties apply if the 1099-MISC is filed late or intentionally not filed at all.