Do you operate a trade or business? If the answer is yes, you may want to learn about your potential 1099-MISC filing requirements. Watch this video to find out more about the requirements for issuing a 1099-MISC.
Beginning in 2020, the 1099-MISC has been replaced by the 1099-NEC for non-employee compensation.
Hi, I'm Arye from TurboTax with some helpful information about when to issue a 1099-MISC tax form. Do you operate a trade or business and are wondering whether you need to issue a 1099-MISC?
There are a variety of transactions that would require you to issue a 1099-MISC, but there are some more common than others.
- If you pay more than $600 in exchange for services, such as payments to an independent contractor or payments to a lawyer or law firm, then you would typically need to issue a 1099-MISC.
- You'll also need to issue a 1099-MISC if you pay $10 or more in royalties or issue prizes and awards of $600 or more.
- If you ever need to pay a lawsuit settlement other than those to compensate an individual for physical injuries or medical expenses, that’s a 1099-MISC as well.