1099-MISC - Overview
File Form 1099-MISC for each person to whom you have paid during the year:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
- At least $600 in:
- Rents.
- Prizes and awards.
- Other income payments.
- Medical and health care payments.
- Crop insurance proceeds.
- Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
- Generally, the cash paid from a notional principal contract to an individual, partnership, or estate.
- Payments to an attorney.
- Any fishing boat proceeds.
- In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment.
Note that some accounts may be considered exempt based on their US tax classification. (e.g., Corporation) for certain income types.
Deadlines
See below for the deadlines relevant to the Form 1099-MISC:
- January 31st is the last day to deliver forms to recipients
- March 31st is the last day to submit filings
If a deadline falls on a weekend or holiday, it will be extended to the next business day. A 30-day extension is generally available for both of the deadlines above.
Resources
Please see the Form 1099-MISC – IRS Form & Instructions for official IRS information.
Please refer to the 1099-MISC - Data Requirements guide for detailed data requirements.
Below are the applicable CSV Ingestion Templates:
- Account Owner/Account CSV Template
- Transactions CSV Template
- 1099-MISC Form Data CSV Template – Only required if not sending transactions
A sample form is also attached to the bottom of this article for your reference.
Data Requirements
See below for all of the required data elements for completing Form 1099-MISC reporting.
Filing Entity
The legal entity responsible for the issuing forms will be the filing entity. The information listed below must be submitted through the Taxbit Dashboard.
For more information on Filer setup, please refer to this guide: Filer Setup
|
Field Name |
Required |
|
Name |
Required |
|
Address |
Required |
|
Tax Residency |
Required |
|
US TIN |
Required |
|
Contact Phone Number |
Required |
Please note: If there are multiple filers, please ensure that you are using the correct filer ID for the associated account(s).
Account Owner / Account
For ingestion purposes, the only data point required to create/update an Account Owner is the Account ID. This allows you to add all of your users to the Dashboard, even while you may still be collecting additional information. There will be reports available in the Dashboard to let you know if something is missing for an Account that is eligible for a tax form.
For more information on formatting the Account Owner/Account CSV templates, please refer to this guide: Standard Account Owner/Account - CSV Ingestion Template Guide
The following table, however, summarizes the required fields needed to complete the Form 1099-MISC.
|
Field Name |
Required |
|
Account Owner ID |
Only required if you have Account Owners with multiple Accounts |
|
Account ID |
Required |
|
Name |
Required |
|
Joint Account Name |
If Applicable |
|
Address |
Required |
|
Tax Residency |
Presumed US if unavailable |
|
TIN |
Required |
|
Filer ID |
Only required if you have multiple Filers |
Note that there are other fields on the Account Owner / Account model that are not listed here, as they are not required for 1099-MISC reporting.
Transactions or Form Data
For account activity, we can either collect raw transaction data, in which case Taxbit will complete the aggregations and determine the ultimate data to report on the Form 1099. If you are doing the aggregations already, then we also offer the option of sending us Form Data, which would include the final amounts that go on the form.
Transactions
For the Form 1099-MISC, the only applicable transaction type is Income, with a few different subtypes.
|
Field Name |
Required |
|
Account ID |
Required |
|
Transaction ID |
Required |
|
Date and Time |
Required |
|
Transaction Type |
Required: Income |
|
Transaction Subtype |
Required See here for all available transaction types and subtypes |
|
Received Asset Quantity, Currency, and Rate/USD Value |
Required |
|
Sent Asset Quantity, Currency, and Rate/USD Value |
Not Applicable |
|
Fee Asset Quantity, Currency, and Rate/USD Value |
If Applicable |
Form Data
To the extent transactions are not being provided, the following data points must be provided for Form Data ingestion.
Note that there should typically be a single row for each Account in the template; however, if the income applies to multiple states, there may be a separate row for each state. The state field is only required if there is state withholding, or if the income is attributable to a state that is different from the Account Owner’s address.
|
Field Name |
Required |
|
Account ID |
Required |
|
Rents (Box 1) |
At least one of the income fields must be provided, unless payer made direct sales totaling $5,000 or more of consumer products |
|
Royalties (Box 2) |
|
|
Other income (Box 3) |
|
|
Fishing boat proceeds (Box 5) |
|
|
Medical and health care payments (Box 6) |
|
|
Substitute payments in lieu of dividends or interest (Box 8) |
|
|
Crop insurance proceeds (Box 9) |
|
|
Gross proceeds paid to an attorney (Box 10) |
|
|
Fish purchased for resale (Box 11) |
|
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Section 409A deferrals (Box 12) |
|
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Excess golden parachute payments (Box 14) |
|
|
Nonqualified deferred compensation (Box 15) |
|
|
Federal income tax withheld (Box 4) |
If Applicable |
|
Payer made direct sales totaling $5,000 or more of consumer products to recipient for resale (Box 7) |
If Applicable |
|
State tax withheld (Box 16) |
If Applicable |
|
State (Box 17 - 1) |
Only required if there is state withholding, or the income is applicable to a state that is different from the address state |
|
Payer's state number (Box 17 - 2) |
If Applicable |
|
State Income (Box 18) |
Only required if the state field is populated |