Are you a self-employed worker or independent contractor? If you are and you performed work for a company that paid you $600 or more, you should receive a 1099-MISC form. This form is used to report all types of income other than salaries, wages and tips. (If you’re an employee, you’ll need Form W-2 .) This is considered self-employment income, which you’ll need to report when filing taxes.
According to the IRS, you should receive Form 1099-MISC if you were paid the following:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest
- At least $600 in rents, services (including parts and materials), 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, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate
- Any fishing boat proceeds
- Gross proceeds of $600, or more paid to an attorney during the year, or
- Withheld any federal income tax under the backup withholding rules regardless of the amount of the payment
Keep these tips in mind when filing your IRS Form 1099-MISC:
- If you’re filing online, enter Box 7 and all other information correctly.
- If you’re filing with a tax preparer, be sure to provide this form.
If you made payments or earned payments as part of your trade or business, you may need other 1099 forms like:
- Form 1099-INT – If you paid interest on a business debt to someone.
- Form 1099-DIV – If you paid dividends or distributions to a company shareholder.
- Form 1099-S – If you received payment from sale or exchange of real estate.
- Form 1099-B – If you are a broker and sold covered security belonging to your customer.
- Other related forms can be found here.