Filling Out 1099-MISC Form: Basic Guide

June 18, 2021

The fillable 1099-MISC form is also known as a miscellaneous income report, which a taxpayer has to provide to the IRS. The form must contain detailed information on the payments and mixed-income. It is usually provided by return businesses, freelancers, or small business owners. Here you will learn how to fill out a 1099-MISC in no time.

What Is a 1099 Form?

This fillable form is provided by freelancers, owners of small businesses, and anyone who wants to report miscellaneous income to the Internal Revenue Service. Starting from 2020, the 1099s faced several changes. Since 2020, you have to use the 1099-NEC form if you are a contractor or hired the contractor. You have to complete the form if you received or paid over $600 for the work of an independent contractor during the financial year.

There exist 20 different versions of the 1099 form. The 1099-MISC form is filled separately for every person you have provided the next payments during the tax year:

  • Use the blank to confirm the payment of $10 or more in royalties or as broker’s payments in the tax-exempt interest or dividends;
  • Paid $600 or more in the form of rent, prizes, income payments, and notional contracts to the person in cash. It also relates to the payments for fishing boat proceeds, health care payments, crop insurances, attorney payments, 409A section deferrals, and nonqualified compensation;
  • If you withheld the federal income tax for a person, you also have to file the 1099-MISC form.

Where to Get the 1099 Form?

If you are a freelancer, for example, a writer, or an artist, you have to hire yourself out to the companies or individuals on a contract basis. Every job must be paid and hence declared in the tax income statement. The best way to do it is to file the 1099-MISC form. You can do it by yourself or ask the employer who hired you. In case you did not receive the form from the person who hired you, you can download it as a PDF version on There is a free trial period that grants you access to the forms you need. Another way is to complete this form online and send it electronically to the IRS. Before you send anything, make sure you double-check all the boxes and fill everything that was required.

How to Fill out a 1099 Form?

After you have learned how to get 1099 forms and downloaded a document on your laptop, it is recommended to get yourself familiar with it. Though the form is not that big, it requires your careful attention. It contains 8 pages. However, there are pages with detailed explanations for every box you have to fill. Before you start, you have to gather all the information you may need in front of you. A mistake will lead to the necessity to send another form with corrections.

You might have already filed last year’s versions of the 1099-MISC form before. There are several changes that were made this year. The most significant change is made in Box 7. It is mainly connected with the 1099-NEC form separation.

Check out the meaning of each box in the form:

  • Box 1. Rent. You have to enter at least $600 for all the rent types you have, including the real estate, pasture, and car.
  • Box 2 for Royalties. Fill the box with the gross royalty payments starting from $10.
  • Box 3 is for the Other Income. You have to enter at least $600 and more for your other income that can’t be reported in other boxes.
  • Box 4 is for the Federal Income Tax Withheld. If you have backup withholdings, you have to enter them (only applicable).
  • Box 5 is for the Fishing Boat Proceeds. Here, you should define the share of any proceeds from the sale of your catch or the FMV of the distribution for every member of the crew if there are less than 10 people.
  • Box 6 is for the Medial and Health Care Payments. If you paid $600 or more for medical or health care, you have to state it in this box. It does not matter which supplier of medical services you’ve used.
  • Box 7 requires your “X” mark if you as a payer have made sales of $5000 or more of the consumer products to the buyer for release. You don’t need to put any numbers here.
  • Box 8 is for the Substitute Payments in Lieu of Interest or Dividends. The amount of money you mention here can start from $10. Here, you have to state all the substitute payments received by the broker for the customer.
  • Box 9 is for the Crop Insurance Proceeds. If you have the crop insurance proceeds of $600 or more, you have to enter the amount of money here.
  • Box 10 is for the Gross Proceeds Paid to Attorney. If you received the legal services of an attorney during this financial year, you have to mention it here. The sum must be $600 or more.
  • Box 11 is about the Fish Purchased for Resale. If you don’t have it, you don’t need to post anything there.
  • Box 12 is for the 409A Deferrals. You don’t need to complete the box. Check out the instructions in the form if you still have questions about it.
  • Box 13 is about the Excess Golden Parachute Payments. If you have any excess golden parachute payments, you have to enter the sum.
  • Box 14 is for the Nonqualified Deferred Compensation information. You have to enter the amounts deferred that are stated under the 409A section as an included income if the NQDC plan does not satisfy the requirements of the 409A section.
  • Boxes from 15 to 17 contain the State Information. Fill them with the information if you are a payer who participates in the State/Federal Filing Program or were asked to file the paper copies of the form to your state tax department.

Sending the Form

You have to file the already completed form to the IRS, whether electronically or by mail. Some copies of the document go to the recipient, some – to the state tax department. You have to leave the copy for your personal use. There is a deadline for this form, so make sure you don’t miss it. You may save the reminder for yourself. This year’s tax form must be filed electronically until March 31, 2021, or March 1, 2021, if you send a paper version. The 1099-MISC form copies to other parties must be sent no later than February 1, 2021. You don’t have to use public notary services to make the form legal. You also don’t need to send the form to the state tax department if it was not required.


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