Before you prepare your Form 1099-MISC, you will need the tax information for the business or payer and recipient or payee, as well as the amounts paid to the recipient.
A. Business Information
You will need to include the following information on each Form 1099-MISC form you prepare.
- Federal Employer ID Number
- Business Name
- Business Address
B. Recipient’s Information
Before completing a Form 1099-MISC form for any non-employee, have them fill out a W-9 form. A W-9 form, like W-4s for employees, will provide you with the relevant information for the recipient such as their name, address, and tax identification number.
C. Payment Amounts
Box 1: Rents. The total of any rental payments made to the contractor for whom you’re filing this form.
Box 2: Royalties. Any royalty payments from oil, gas, or mineral properties or intellectual properties made to the contractor.
Box 3: Other Income. Any miscellaneous income that does not fit in any other designated box, such as prizes or awards.
Box 4: Federal Income Tax Withheld. Amount of federal income tax withheld from contractor, if any.
Box 5: Fishing Boat Proceeds. Any money paid to a fishing boat contractor.
Box 6: Medical and Health Care Payments. Any medical or health care benefits paid for the contractor.
Box 7: Nonemployee Compensation. Total amount of compensation paid for services provided by a nonemployee.
Box 8: Substitute Payments in Lieu of Dividends or Interest.
Box 9: Payer Made Direct Sales of $5,000 or More of Consumer Products to a Buyer (Recipient) for Resale.
Box 10: Crop Insurance Proceeds. Payments to farmers from crop insurance coverage from the insurance company.
Boxes 11-12: Blank.
Box 13: Excess Golden Parachute Payments. The total amount paid to an employee who has left the company.
Box 14: Gross Proceeds Paid to an Attorney.
Boxes 15a and 15b: Section 409A Deferrals and Income. Payments made as part of a nonqualified deferred compensation (NQDC) plan.
Box 16-18: State Income Tax Information. Information regarding state income and withholding.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.