Miscellaneous Income

2019

Department of the Treasury
Internal Revenue Service

Instructions for
Form 1099-MISC
Miscellaneous Income
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments

For the latest information about developments related to
Form 1099-MISC and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form1099MISC.

Reminders
General instructions. In addition to these specific
instructions, you also should use the 2019 General
Instructions for Certain Information Returns. Those general
instructions include information about the following topics.
• Who must file.
• When and where to file.
• Electronic reporting.
• Corrected and void returns.
• Statements to recipients.
• Taxpayer identification numbers (TINs).
• Backup withholding.
• Penalties.
• The definitions of terms applicable for chapter 4 purposes
that are referenced in these instructions.
• Other general topics.
You can get the general instructions from General
Instructions for Certain Information Returns at IRS.gov/
1099GeneralInstructions or go to IRS.gov/Form1099MISC.
Online fillable copies. To ease statement furnishing
requirements, Copies B, C, 1, and 2 have been made fillable
online in a pdf format available at IRS.gov/Form1099MISC.
You can complete these copies online for furnishing
statements to recipients and for retaining in your own files.
Filing date when nonemployee compensation (NEC)
payments are reported in box 7. Section 6071(c),
requires you to file Form 1099-MISC on or before January
31, 2020, if you are reporting NEC payments in box 7, using
either paper or electronic filing procedures. For all other
reported payments, file Form 1099-MISC by February 28,
2020, if you file on paper, or March 31, 2020, if you file
electronically.
If any of your Forms 1099-MISC reporting NEC will
be filed after January 31, 2019, file them in a
CAUTION separate transmission from your Forms 1099-MISC
without NEC (due April 1, 2019). Filers should anticipate that
if transmissions sent after January 31, 2019, include both
Forms 1099-MISC reporting NEC and Forms 1099-MISC that
do not report NEC in a single transmission (on paper with a
single Form 1096 or electronically through FIRE with a single
payer “A” record), the IRS will treat every form in the single
transmission as if it is subject to the section 6721 penalty for
failure to file by January 31, 2019. The IRS may send you a
Notice 972CG, A Penalty Is Proposed for Your Information

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Nov 19, 2018

Returns, to which you may respond and clarify the content of
the submission, indicating the number of Forms 1099-MISC
that did not report NEC.

Specific Instructions

File Form 1099-MISC, Miscellaneous Income, for each
person in the course of your business to whom you have paid
during the year:
• At least $10 in royalties (see the instructions for box 2) or
broker payments in lieu of dividends or tax-exempt interest
(see the instructions for box 8);
• At least $600 in:
1. Rents (box 1);
2. Services performed by someone who is not your
employee (including parts and materials), box 7;
3. Prizes and awards (see the instructions for boxes 3
and 7);
4. Other income payments (box 3);
5. Medical and health care payments (box 6);
6. Crop insurance proceeds (box 10);
7. Cash payments for fish (or other aquatic life) you
purchase from anyone engaged in the trade or business of
catching fish (box 7);
8. Generally, the cash paid from a notional principal
contract to an individual, partnership, or estate (box 3);
9. Payments to an attorney. (See Payments to attorneys),
later; or
10. Any fishing boat proceeds (box 5).
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 (box 9).
You also must file Form 1099-MISC for each person from
whom you have withheld any federal income tax (report in
box 4) under the backup withholding rules regardless of the
amount of the payment.
Be sure to report each payment in the proper box
because the IRS uses this information to determine
CAUTION whether the recipient has properly reported the
payment.

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Trade or business reporting only. Report on Form
1099-MISC only when payments are made in the course of
your trade or business. Personal payments are not
reportable. You are engaged in a trade or business if you
operate for gain or profit. However, nonprofit organizations
are considered to be engaged in a trade or business and are
subject to these reporting requirements. Other organizations
subject to these reporting requirements include trusts of
qualified pension or profit-sharing plans of employers, certain

Cat. No. 27982J

for teaching, research, or other services as a condition for
receiving the grant are considered wages and must be
reported on Form W-2. Other taxable scholarship or
fellowship payments (to a degree or nondegree candidate)
do not have to be reported to the IRS on any form, unless
section 6050S requires reporting of such amounts by an
educational institution on Form 1098-T, Tuition Statement.
See section 117(b)–(d) and Regulations section 1.6041-3(n)
for more information.
Difficulty-of-care payments. Do not use Form
1099-MISC to report difficulty-of-care payments that are
excludable from the recipient's gross income.
Difficulty-of-care payments to foster care providers are not
reportable if paid for fewer than 11 children under age 19 and
fewer than six individuals age 19 or older. See section
131(c). Amounts paid for more than 10 children or more than
five other individuals are reportable on Form 1099-MISC.
Certain Medicaid waiver payments may be excludable
from income as difficulty-of-care payments. For more
information, see Notice 2014-7, available at IRS.gov/irb/
2014-4_IRB/ar06.html, and Medicaid waiver payments
frequently asked questions (FAQs), available at IRS.gov/
Individuals/Certain-Medicaid-Payments-May-Be-ExcludableFrom-Income.

organizations exempt from tax under section 501(c) or (d),
farmers' cooperatives that are exempt from tax under section
521, and widely held fixed investment trusts. Payments by
federal, state, or local government agencies also are
reportable.
Exceptions. Some payments do not have to be reported on
Form 1099-MISC, although they may be taxable to the
recipient. Payments for which a Form 1099-MISC is not
required include all of the following.
• Generally, payments to a corporation (including a limited
liability company (LLC) that is treated as a C or S
corporation). However, see Reportable payments to
corporations, later.
• Payments for merchandise, telegrams, telephone, freight,
storage, and similar items.
• Payments of rent to real estate agents or property
managers. However, the real estate agent or property
manager must use Form 1099-MISC to report the rent paid
over to the property owner. See Regulations sections
1.6041-3(d), 1.6041-1(e)(5), Example 5, and the instructions
for box 1.
• Wages paid to employees (report on Form W-2, Wage and
Tax Statement).
• Military differential wage payments made to employees
while they are on active duty in the Armed Forces or other
uniformed services (report on Form W-2).
• Business travel allowances paid to employees (may be
reportable on Form W-2).
• Cost of current life insurance protection (report on Form
W-2 or Form 1099-R, Distributions From Retirement Plans,
Insurance Contracts, etc.).
• Payments to a tax-exempt organization including
tax-exempt trusts (IRAs, HSAs, Archer MSAs, Coverdell
ESAs, and ABLE (529A) accounts), the United States, a
state, the District of Columbia, a U.S. possession, or a
foreign government.
• Payments made to or for homeowners from the HFA
Hardest Hit Fund or similar state program (report on Form
1098-MA).
• Compensation for injuries or sickness by the Department
of Justice as a public safety officer disability or survivor's
benefit, or under a state program that provides benefits for
surviving dependents of a public safety officer who has died
as the direct and proximate result of a personal injury
sustained in the line of duty.
• Compensation for wrongful incarceration for any criminal
offense for which there was a conviction under federal or
state law. See section 139F, Certain amounts received by
wrongfully incarcerated individuals.
Form 1099-K. Payments made with a credit card or
payment card and certain other types of payments, including
third-party network transactions, must be reported on Form
1099-K by the payment settlement entity under section
6050W and are not subject to reporting on Form 1099-MISC.
See the separate Instructions for Form 1099-K.
Fees paid to informers. A payment to an informer as an
award, fee, or reward for information about criminal activity
does not have to be reported if the payment is made by a
federal, state, or local government agency, or by a nonprofit
organization exempt from tax under section 501(c)(3) that
makes the payment to further the charitable purpose of
lessening the burdens of government. For more information,
see Regulations section 1.6041-3(l).
Scholarships. Do not use Form 1099-MISC to report
scholarship or fellowship grants. Scholarship or fellowship
grants that are taxable to the recipient because they are paid

Canceled debt. A canceled debt is not reportable on Form
1099-MISC. Canceled debts reportable under section 6050P
must be reported on Form 1099-C. See the Instructions for
Forms 1099-A and 1099-C.
Reportable payments to corporations. The following
payments made to corporations generally must be reported
on Form 1099-MISC.
• Medical and health care payments reported in box 6.
• Fish purchases for cash reported in box 7.
• Attorneys' fees reported in box 7.
• Gross proceeds paid to an attorney reported in box 14.
• Substitute payments in lieu of dividends or tax-exempt
interest reported in box 8.
• Payments by a federal executive agency for services
(vendors) reported in box 7.
Federal executive agencies may also have to file
Form 8596, Information Return for Federal Contracts,
CAUTION and Form 8596-A, Quarterly Transmittal of
Information Returns for Federal Contracts, if a contracted
amount for personal services is more than $25,000. See Rev.
Rul. 2003-66, which is on page 1115 of Internal Revenue
Bulletin 2003-26 at IRS.gov/pub/irs-irbs/irb03-26.pdf for
details.

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Payments to attorneys. The term “attorney” includes a law
firm or other provider of legal services. Attorneys' fees of
$600 or more paid in the course of your trade or business are
reportable in box 7 of Form 1099-MISC, under section
6041A(a)(1).
Gross proceeds paid to attorneys. Under section
6045(f), report in box 14 payments that:
• Are made to an attorney in the course of your trade or
business in connection with legal services, but not for the
attorney’s services, for example, as in a settlement
agreement;
• Total $600 or more; and
• Are not reportable by you in box 7.
Generally, you are not required to report the claimant's
attorney's fees. For example, an insurance company pays a
claimant's attorney $100,000 to settle a claim. The insurance
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Instructions for Form 1099-MISC (2019)

Medicare wages on the employee's Form W-2 to ensure that
proper social security and Medicare credit is received. On
the Form W-2, show the payment as social security wages
(box 3) and Medicare wages and tips (box 5) and the social
security and Medicare taxes withheld in boxes 4 and 6; do
not show the payment in box 1 of Form W-2.
If you made the payment after the year of death, do not
report it on Form W-2 and do not withhold social security and
Medicare taxes.
Whether the payment is made in the year of death or after
the year of death, you also must report the payment to the
estate or beneficiary on Form 1099-MISC. Report the
payment in box 3 (rather than in box 7 as specified in Rev.
Rul. 86-109, 1986-2 C.B. 196). See the Example that follows.
Enter the name and TIN of the payment recipient on Form
1099-MISC. For example, if the recipient is an individual
beneficiary, enter the name and social security number of the
individual; if the recipient is the estate, enter the name and
employer identification number of the estate. The general
backup withholding rules apply to this payment.
Death benefits from nonqualified deferred compensation
plans or section 457 plans paid to the estate or beneficiary of
a deceased employee are reportable on Form 1099-MISC.
Do not report these death benefits on Form 1099-R.
However, if the benefits are from a qualified plan, report them
on Form 1099-R. See the Instructions for Forms 1099-R and
5498.

company reports the payment as gross proceeds of
$100,000 in box 14. However, the insurance company does
not have a reporting requirement for the claimant's attorney's
fees subsequently paid from these funds.
These rules apply whether or not:
• The legal services are provided to the payer,
• The attorney is the exclusive payee (for example, the
attorney's and claimant's names are on one check) or,
• Other information returns are required for some or all of a
payment under another section of the Code, such as section
6041.
For example, a person who, in the course of a trade or
business, pays $600 of taxable damages to a claimant by
paying that amount to a claimant's attorney is required to:
• Furnish Form 1099-MISC to the claimant, reporting
damages pursuant to section 6041, generally in box 3, and
• Furnish Form 1099-MISC to the claimant’s attorney,
reporting gross proceeds paid pursuant to section 6045(f), in
box 14.
For more examples and exceptions relating to payments to
attorneys, see Regulations section 1.6045-5.
However, these rules do not apply to wages paid to
attorneys that are reportable on Form W-2 or to profits
distributed by a partnership to its partners that are
reportable on:
• Schedule K-1 (Form 1065), Partner's Share of Income,
Deductions, Credits, etc.; or
• Schedule K-1 (Form 1065-B), Partner's Share of Income
(Loss) From an Electing Large Partnership.
Payments to corporations for legal services. The
exemption from reporting payments made to corporations
does not apply to payments for legal services. Therefore, you
must report attorneys' fees (in box 7) or gross proceeds (in
box 14) as described earlier to corporations that provide legal
services.
Taxpayer identification numbers (TINs). To report
payments to an attorney on Form 1099-MISC, you must
obtain the attorney's TIN. You may use Form W-9, Request
for Taxpayer Identification Number and Certification, to
obtain the attorney's TIN. An attorney is required to promptly
supply its TIN whether it is a corporation or other entity, but
the attorney is not required to certify its TIN. If the attorney
fails to provide its TIN, the attorney may be subject to a
penalty under section 6723 and its regulations, and you must
backup withhold on the reportable payments.
Fish purchases. If you are in the trade or business of
purchasing fish for resale, you must report total cash
payments of $600 or more paid during the year to any person
who is engaged in the trade or business of catching fish.
Report these payments in box 7. You are required to keep
records showing the date and amount of each cash payment
made during the year, but you must report only the total
amount paid for the year on Form 1099-MISC.
“Fish” means all fish and other forms of aquatic life. “Cash”
means U.S. and foreign coin and currency and a cashier's
check, bank draft, traveler's check, or money order. Cash
does not include a check drawn on your personal or business
account.

Example. Before Employee A's death on June 15, 2019,
A was employed by Employer X and received $10,000 in
wages on which federal income tax of $1,500 was withheld.
When A died, X owed A $2,000 in wages and $1,000 in
accrued vacation pay. The total of $3,000 (less the social
security and Medicare taxes withheld) was paid to A's estate
on July 20, 2019. Because X made the payment during the
year of death, X must withhold social security and Medicare
taxes on the $3,000 payment and must complete Form W-2
as follows.
• Box 1—10000.00 (does not include the $3,000 accrued
wages and vacation pay).
• Box 2—1500.00.
• Box 3—13000.00 (includes the $3,000 accrued wages
and vacation pay).
• Box 4—Social security tax withheld on the amount in
box 3.
• Box 5—13000.00 (includes the $3,000 accrued wages
and vacation pay).
• Box 6—Medicare tax withheld on the amount in box 5.
Employer X also must complete Form 1099-MISC as
follows.
• Boxes for recipient's name, address, and TIN—The estate
or beneficiary's name, address, and TIN.
• Box 3—3000.00 (Even though amounts were withheld for
social security and Medicare taxes, the gross amount is
reported here).
If Employer X made the payment after the year of death,
the $3,000 would not be subject to social security and
Medicare taxes and would not be shown on Form W-2.
However, the employer would still file Form 1099-MISC.

Deceased employee's wages. When an employee dies
during the year, you must report the accrued wages, vacation
pay, and other compensation paid after the date of death. If
you made the payment in the same year the employee died,
you must withhold social security and Medicare taxes on the
payment and report them only as social security and

Employee business expense reimbursements. Do not
use Form 1099-MISC to report employee business expense
reimbursements. Report payments made to employees
under a nonaccountable plan as wages on Form W-2.
Generally, payments made to employees under an
accountable plan are not reportable on Form W-2, except in

Instructions for Form 1099-MISC (2019)

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information returns for payments of $600 or more paid to
contractors. For more information, see Regulations section
1.6041(e).

certain cases when you pay a per diem or mileage
allowance. For more information, see the Instructions for
Forms W-2 and W-3, and Pub. 463. For information on
reporting employee moving expense reimbursements on
Form W-2, see the Instructions for Forms W-2 and W-3.

Indian gaming profits, payments to tribal members. If
you make payments to members of Indian tribes from the net
revenues of class II or class III gaming activities conducted or
licensed by the tribes, you must withhold federal income tax
on such payments. File Form 1099-MISC to report the
payments and withholding to tribal members. Report the
payments in box 3 and the federal income tax withheld in
box 4. Pub. 15-A contains the necessary Tables for
Withholding on Distributions of Indian Gaming Profits to
Tribal Members.

Independent contractor or employee. Generally, you
must report payments to independent contractors on Form
1099-MISC in box 7. See the instructions for box 7.
Section 530 of the Revenue Act of 1978 as extended

TIP by section 269(c) of P.L. 97-248 deals with the

employment tax status of independent contractors
and employees. To qualify for relief under section 530,
employers must file Form 1099-MISC. Additional
requirements for relief are discussed in Rev. Proc. 85-18,
1985-1 C.B. 518. Also see Pub. 15-A for special rules that
may apply to technical service specialists and test proctors
and room supervisors.

State or local sales taxes. If state or local sales taxes are
imposed on the service provider and you (as the buyer) pay
them to the service provider, report them on Form
1099-MISC as part of the reportable payment. However, if
sales taxes are imposed on you (as the buyer) and collected
from you by the service provider, do not report the sales
taxes on Form 1099-MISC.

Transit passes and parking for independent contractors. Although you cannot provide qualified transportation
fringes to independent contractors, the working condition and
de minimis fringe rules for transit passes and parking apply to
independent contractors. Tokens or farecards that enable an
independent contractor to commute on a public transit
system (not including privately operated van pools) are
excludable from the independent contractor's gross income
and are not reportable on Form 1099-MISC if their value in
any month is $21 or less. However, if the value of a pass
provided in a month is greater than $21, the full value is part
of the gross income and must be reported on Form
1099-MISC. The value of parking may be excludable from an
independent contractor's gross income, and, therefore, not
reportable on Form 1099-MISC if certain requirements are
met. See Regulations section 1.132-9(b), Q/A-24.

Widely held fixed investment trusts (WHFITs). Trustees
and middlemen of WHFITs must report items of gross
income attributable to a trust income holder (TIH) on the
appropriate Form 1099. A tax information statement that
includes the information provided to the IRS on Forms 1099,
as well as additional information identified in Regulations
section 1.671-5(e), must be furnished to TIHs. For details,
see the 2019 General Instructions for Certain Information
Returns.

Statements to Recipients

If you are required to file Form 1099-MISC, you must furnish
a statement to the recipient. For more information about the
requirement to furnish a statement to each recipient, and
truncation, see part M in the 2019 General Instructions for
Certain Information Returns.

Directors' fees. You must report directors' fees and other
remuneration, including payments made after retirement, on
Form 1099-MISC in the year paid. Report them in box 7.

You can furnish each recipient with a single payee
statement reporting all Form 1099-MISC payment types. Two
separate recipient statements are not required, even if you
report the NEC and non-NEC on two different forms filed with
the IRS. Regardless of how you file with the IRS, you are
required to furnish the payee statements by January 31.

Commissions paid to lottery ticket sales agents. A state
that has control over and responsibility for online and instant
lottery games must file Form 1099-MISC to report
commissions paid, whether directly or indirectly, to licensed
sales agents. For example, State X retains control over and
liability for online and instant lottery games. For online ticket
sales, State X pays commissions by allowing an agent to
retain 5% of the ticket proceeds the agent remits to State X.
For instant ticket sales, State X pays commissions by
providing tickets to the agent for 5% less than the proceeds
to be obtained by the agent from the sale of those tickets. If
the commissions for the year total $600 or more, they must
be reported in box 7 on Form 1099-MISC. See Rev. Rul.
92-96, 1992-2 C.B. 281.

Truncating recipient’s TIN on payee statements.
Pursuant to Regulations section 301.6109-4, all filers of this
form may truncate a recipient’s TIN (social security number
(SSN), individual taxpayer identification number (ITIN),
adoption taxpayer identification number (ATIN), or employer
identification number (EIN)) on payee statements. Truncation
is not allowed on any documents the filer files with the IRS. A
payer's TIN may not be truncated on any form. See part J in
the 2019 General Instructions for Certain Information
Returns.

Payments made on behalf of another person. For
payments reportable under section 6041, if you make a
payment on behalf of another person, who is the source of
the funds, you may be responsible for filing Form
1099-MISC. You are the payor for information reporting
purposes if you perform management or oversight functions
in connection with the payment, or have a significant
economic interest in the payment (such as a lien). For
example, a bank that provides financing to a real estate
developer for a construction project maintains an account
from which it makes payments for services in connection with
the project. The bank performs management and oversight
functions over the payments and is responsible for filing

Foreign Account Tax Compliance Act (FATCA)
Filing Requirement Checkbox

Check the box if you are a U.S. payer that is reporting on
Form(s) 1099 (including reporting payments on this Form
1099-MISC) as part of satisfying your requirement to report
with respect to a U.S. account for chapter 4 purposes as
described in Regulations section 1.1471-4(d)(2)(iii)(A). In
addition, check the box if you are a Foreign Financial
Institution (FFI) reporting payments to a U.S. account
pursuant to an election described in Regulations section
1.1471-4(d)(5)(i)(A). Finally, check the box if you are an FFI

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Instructions for Form 1099-MISC (2019)

See Regulations sections 1.6041-3(d) and 1.6041-1(e)(5),
Example 5.
• Machine rentals (for example, renting a bulldozer to level
your parking lot). If the machine rental is part of a contract
that includes both the use of the machine and the operator,
prorate the rental between the rent of the machine (report
that in box 1) and the operator's charge (report that as NEC
in box 7).
• Pasture rentals (for example, farmers paying for the use of
grazing land).

making the election described in Regulations section
1.1471-4(d)(5)(i)(A) and are reporting a U.S. account for
chapter 4 purposes to which you made no payments during
the year that are reportable on any applicable Form 1099 (or
are reporting a U.S. account to which you made payments
during the year that do not reach the applicable reporting
threshold for any applicable Form 1099).

2nd TIN not.

You may enter an “X” in this box if you were notified by the
IRS twice within 3 calendar years that the payee provided an
incorrect TIN. If you mark this box, the IRS will not send you
any further notices about this account.

Public housing agencies must report in box 1 rental
assistance payments made to owners of housing projects.
See Rev. Rul. 88-53, 1988-1 C.B. 384.
Coin-operated amusements. If an arrangement between
an owner of coin-operated amusements and an owner of a
business establishment where the amusements are placed is
a lease of the amusements or the amusement space, the
owner of the amusements or the owner of the space,
whoever makes the payments, must report the lease
payments in box 1 of Form 1099-MISC if the payments total
at least $600. However, if the arrangement is a joint venture,
the joint venture must file a Form 1065, U.S. Return of
Partnership Income, and provide each partner with the
information necessary to report the partner's share of the
taxable income. Coin-operated amusements include video
games, pinball machines, jukeboxes, pool tables, slot
machines, and other machines and gaming devices operated
by coins or tokens inserted into the machines by individual
users. For more information, see Rev. Rul. 92-49, 1992-1
C.B. 433.

However, if you received both IRS notices in the same
year, or if you received them in different years but they both
related to information returns filed for the same year, do not
check the box at this time. For purposes of the
two-notices-in-3-years rule, you are considered to have
received one notice and you are not required to send a
second “B” notice to the taxpayer on receipt of the second
notice. See part N in the 2019 General Instructions for
Certain Information Returns for more information.
For information on the TIN Matching System offered

TIP by the IRS, see the 2019 General Instructions for
Certain Information Returns.

Corrections to Form 1099-MISC

If you need to correct a Form 1099-MISC that you have
already sent to the IRS:
• For paper forms, see the 2019 General Instructions for
Certain Information Returns, part H; or
• For electronic corrections, see Pub. 1220.

Box 2. Royalties

Enter gross royalty payments (or similar amounts) of $10 or
more. Report royalties from oil, gas, or other mineral
properties before reduction for severance and other taxes
that may have been withheld and paid. Do not include
surface royalties. They should be reported in box 1. Do not
report oil or gas payments for a working interest in box 2;
report payments for working interests in box 7. Do not report
timber royalties made under a pay-as-cut contract; report
these timber royalties on Form 1099-S, Proceeds From Real
Estate Transactions.

If you are filing a correction on a paper form, do not
check the VOID box on the form. A checked VOID
CAUTION box alerts IRS scanning equipment to ignore the form
and proceed to the next one. Your correction will not be
entered into IRS records if you check the VOID box.

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Recipient's TIN

Enter the recipient's TIN using hyphens in the proper format.
SSNs, ITINs, and ATINs should be in the XXX-XX-XXXX
format. EINs should be in the XX-XXXXXXX format. You
should make every effort to ensure that you have the correct
type of number reported in the correct format.

Use box 2 to report royalty payments from intangible
property such as patents, copyrights, trade names, and
trademarks. Report the gross royalties (before reduction for
fees, commissions, or expenses) paid by a publisher directly
to an author or literary agent, unless the agent is a
corporation. The literary agent (whether or not a corporation)
that receives the royalty payment on behalf of the author
must report the gross amount of royalty payments to the
author on Form 1099-MISC whether or not the publisher
reported the payment to the agent on its Form 1099-MISC.

Account Number

The account number is required if you have multiple
accounts for a recipient for whom you are filing more than
one Form 1099-MISC. The account number also is required if
you check the “FATCA filing requirement” box. See FATCA
Filing Requirement Checkbox, earlier. Additionally, the IRS
encourages you to designate an account number for all
Forms 1099-MISC that you file. See part L in the 2019
General Instructions for Certain Information Returns.

Box 3. Other Income

Enter other income of $600 or more required to be reported
on Form 1099-MISC that is not reportable in one of the other
boxes on the form.

Box 1. Rents

Also enter in box 3 prizes and awards that are not for
services performed. Include the fair market value (FMV) of
merchandise won on game shows. Also include amounts
paid to a winner of a sweepstakes not involving a wager. If a
wager is made, report the winnings on Form W-2G.

Enter amounts of $600 or more for all types of rents, such as
any of the following.
• Real estate rentals paid for office space. However, you do
not have to report these payments on Form 1099-MISC if you
paid them to a real estate agent or property manager. But the
real estate agent or property manager must use Form
1099-MISC to report the rent paid over to the property owner.
Instructions for Form 1099-MISC (2019)

-5-

such as employment discrimination or defamation. However,
do not report damages (other than punitive damages):
a. Received on account of personal physical injuries or
physical sickness;
b. That do not exceed the amount paid for medical care
for emotional distress;
c. Received on account of nonphysical injuries (for
example, emotional distress) under a written binding
agreement, court decree, or mediation award in effect on or
issued by September 13, 1995; or
d. That are for a replacement of capital, such as
damages paid to a buyer by a contractor who failed to
complete construction of a building.

If, not later than 60 days after the winner becomes

TIP entitled to the prize, the winner can choose the

option of a lump sum or an annuity payable over at
least 10 years, the payment of winnings is considered made
when actually paid. If the winner chooses an annuity, file
Form 1099-MISC each year to report the annuity paid during
that year.
Do not include prizes and awards paid to your employees.
Report these on Form W-2. Do not include in box 3 prizes
and awards for services performed by nonemployees, such
as an award for the top commission salesperson. Report
them in box 7.
Prizes and awards received in recognition of past
accomplishments in religious, charitable, scientific, artistic,
educational, literary, or civic fields are not reportable if:
• The winners are chosen without action on their part,
• The winners are not expected to perform future services,
and
• The payer transfers the prize or award to a charitable
organization or governmental unit under a designation made
by the recipient. See Rev. Proc. 87-54, 1987-2 C.B. 669.

Damages received on account of emotional distress,
including physical symptoms such as insomnia, headaches,
and stomach disorders, are not considered received for a
physical injury or physical sickness and are reportable unless
described in (b) or (c) above. However, damages received
on account of emotional distress due to physical injuries or
physical sickness are not reportable.
Also report liquidated damages received under the Age
Discrimination in Employment Act of 1967.

Other items required to be reported in box 3 include the
following.
1. Payments as explained earlier under Deceased
employee's wages.
2. Payments as explained earlier under Indian gaming
profits, payments to tribal members.
3. A payment or series of payments made to individuals
for participating in a medical research study or studies.

Taxable back pay damages may be wages and

TIP reportable on Form W-2. See Pub. 957.

Foreign agricultural workers. Report in box 3
compensation of $600 or more paid in a calendar year to an
H-2A visa agricultural worker who did not give you a valid
TIN. You also must withhold federal income tax under the
backup withholding rules. For more information, go to
IRS.gov and enter “foreign agricultural workers” in the search
box.

4. Termination payments to former self-employed
insurance salespeople. These payments are not subject to
self-employment tax and are reportable in box 3 (rather than
box 7) if all the following apply.

Account reported under FATCA. If you are an FFI
reporting pursuant to an election described in Regulations
section 1.1471-4(d)(5)(i)(A) a U.S. account required to be
reported under chapter 4 to which during the year you made
no payments reportable on an applicable Form 1099, enter
zero in box 3. In addition, if you are an FFI described in the
preceding sentence and, during the year, you made
payments to the account required to be reported under
chapter 4, but those payments are not reportable on an
applicable Form 1099 (for example, because the payment is
under the applicable reporting threshold), you must report the
account on this Form 1099-MISC and enter zero in box 3.

a. The payments are received from an insurance
company because of services performed as an insurance
salesperson for the company.
b. The payments are received after termination of the
salesperson's agreement to perform services for the
company.
c. The salesperson did not perform any services for the
company after termination and before the end of the year.
d. The salesperson enters into a covenant not to
compete against the company for at least 1 year after the
date of termination.
e. The amount of the payments depends primarily on
policies sold by the salesperson or credited to the
salesperson's account during the last year of the service
agreement or to the extent those policies remain in force for
some period after termination, or both.
f. The amount of the payments does not depend at all on
length of service or overall earnings from the company
(regardless of whether eligibility for payment depends on
length of service).

Box 4. Federal Income Tax Withheld

Enter backup withholding. For example, persons who have
not furnished their TINs to you are subject to withholding on
payments required to be reported in boxes 1, 2 (net of
severance taxes), 3, 5 (to the extent paid in cash), 6, 7
(except fish purchases for cash), 8, 10, and 14. For more
information on backup withholding, including the rate, see
part N in the 2019 General Instructions for Certain
Information Returns.
Also enter any income tax withheld from payments to
members of Indian tribes from the net revenues of class II or
class III gaming activities conducted or licensed by the tribes.

If the termination payments do not meet all these
requirements, report them in box 7.
5. Generally, all punitive damages, any damages for
nonphysical injuries or sickness, and any other taxable
damages. Report punitive damages even if they relate to
physical injury or physical sickness. Generally, report all
compensatory damages for nonphysical injuries or sickness,

Box 5. Fishing Boat Proceeds

Enter the individual's share of all proceeds from the sale of a
catch or the FMV of a distribution in kind to each crew
member of fishing boats with normally fewer than 10 crew

-6-

Instructions for Form 1099-MISC (2019)

members. A fishing boat has normally fewer than 10 crew
members if the average size of the operating crew was fewer
than 10 on trips during the preceding 4 calendar quarters.

Generally, payments made under a flexible spending
arrangement (as defined in section 106(c)(2)) or a
CAUTION health reimbursement arrangement which is treated
as employer-provided coverage under an accident or health
plan for purposes of section 106 are exempt from the
reporting requirements of section 6041.

!

In addition, report cash payments of up to $100 per trip
that are contingent on a minimum catch and are paid solely
for additional duties (such as mate, engineer, or cook) for
which additional cash payments are traditional in the
industry. However, do not report on Form 1099-MISC any
wages reportable on Form W-2.

Box 7. Nonemployee Compensation

Enter nonemployee compensation of $600 or more. Include
fees, commissions, prizes and awards for services
performed as a nonemployee, other forms of compensation
for services performed for your trade or business by an
individual who is not your employee, and fish purchases for
cash. Include oil and gas payments for a working interest,
whether or not services are performed. Also include
expenses incurred for the use of an entertainment facility that
you treat as compensation to a nonemployee. Federal
executive agencies that make payments to vendors for
services, including payments to corporations, must report the
payments in this box. See Rev. Rul. 2003-66.

Box 6. Medical and Health Care Payments

Enter payments of $600 or more made in the course of your
trade or business to each physician or other supplier or
provider of medical or health care services. Include
payments made by medical and health care insurers under
health, accident, and sickness insurance programs. If
payment is made to a corporation, list the corporation as the
recipient rather than the individual providing the services.
Payments to persons providing health care services often
include charges for injections, drugs, dentures, and similar
items. In these cases, the entire payment is subject to
information reporting. You are not required to report
payments to pharmacies for prescription drugs.

What is nonemployee compensation? If the following
four conditions are met, you must generally report a payment
as NEC.
• You made the payment to someone who is not your
employee.
• You made the payment for services in the course of your
trade or business (including government agencies and
nonprofit organizations).
• You made the payment to an individual, partnership,
estate, or, in some cases, a corporation.
• You made payments to the payee of at least $600 during
the year.

The exemption from issuing Form 1099-MISC to a
corporation does not apply to payments for medical or health
care services provided by corporations, including
professional corporations. However, you are not required to
report payments made to a tax-exempt hospital or extended
care facility or to a hospital or extended care facility owned
and operated by the United States (or its possessions), a
state, the District of Columbia, or any of their political
subdivisions, agencies, or instrumentalities.

Illustrated Example

Instructions for Form 1099-MISC (2019)

-7-

The completed Form 1099-MISC illustrates the following example. Z Builders is a contractor that subcontracts drywall work to
Ronald Green, a sole proprietor who does business as Y Drywall. During the year, Z Builders pays Mr. Green $5,500. Z Builders
must file Form 1099-MISC because they paid Mr. Green $600 or more in the course of their trade or business, and Mr. Green is
not a corporation.

VOID

9595

CORRECTED

PAYER’S name, street address, city or town, state or province, country, ZIP
or foreign postal code, and telephone no.

OMB No. 1545-0115

1 Rents

2019

$
2 Royalties

Z Builders
123 Maple Avenue
Oaktown, AL 00000
555-555-1212

Form 1099-MISC

$

PAYER’S TIN

RECIPIENT’S TIN

123-00-6789

10-9999999
RECIPIENT’S name

3 Other income

4 Federal income tax withheld

$

$

5 Fishing boat proceeds

6 Medical and health care payments

$

$

7 Nonemployee compensation

8 Substitute payments in lieu of
dividends or interest

$

$

Ronald Green
dba/ Y Drywall
Street address (including apt. no.)

5500.00

456 Flower Lane

12

11

Oaktown, AL 00000
FATCA filing 2nd TIN not. 13 Excess golden parachute
payments
requirement

Account number (see instructions)

$
15a Section 409A deferrals

$
Form 1099-MISC

15b Section 409A income

Cat. No. 14425J

For
Internal Revenue
Service Center

For Privacy Act
and Paperwork
Reduction Act
Notice, see the
2019 General
Instructions for
Certain
Information
Returns.

14 Gross proceeds paid to an
attorney

$

16 State tax withheld

$
$

$

Copy A

File with Form 1096.

9 Payer made direct sales of
10 Crop insurance proceeds
$5,000 or more of consumer
products to a buyer
$
(recipient) for resale ▶

City or town, state or province, country, and ZIP or foreign postal code

Miscellaneous
Income

17 State/Payer’s state no.

18 State income

$
$

www.irs.gov/Form1099MISC

Department of the Treasury - Internal Revenue Service

Do Not Cut or Separate Forms on This Page — Do Not Cut or Separate Forms on This Page

• Payments to nonemployee entertainers for services. Use
Form 1042-S, Foreign Person's U.S. Source Income Subject
to Withholding, for payments to nonresident aliens.
• Exchanges of services between individuals in the course
of their trades or businesses. For example, an attorney
represents a painter for nonpayment of business debts in
exchange for the painting of the attorney's law offices. The
amount reportable by each on Form 1099-MISC is the FMV
of his or her own services performed. However, if the
attorney represents the painter in a divorce proceeding, this
is an activity that is unrelated to the painter's trade or
business. The attorney must report on Form 1099-MISC the
value of his or her services. But the painter need not report
on Form 1099-MISC the value of painting the law offices
because the work is in exchange for legal services that are
separate from the painter's business.
• Taxable fringe benefits for nonemployees. For information
on the valuation of fringe benefits, see Pub. 15-B, Employer's
Tax Guide to Fringe Benefits.
• Gross oil and gas payments for a working interest.
• Payments to an insurance salesperson who is not your
common law or statutory employee. See Pub. 15-A for the
definition of employee. However, for termination payments to
former insurance salespeople, see the instructions for box 3.
• Directors' fees as explained under Directors' fees, earlier.
• Commissions paid to licensed lottery ticket sales agents
as explained under Commissions paid to lottery ticket sales
agents, earlier.
• Payments to section 530 (of the Revenue Act of 1978)
workers. See the TIP under Independent contractor or
employee, earlier.
• Fish purchases for cash. See Fish purchases, earlier.

Self-employment tax. Generally, amounts reportable in
box 7 are subject to self-employment tax. If payments to
individuals are not subject to this tax and are not reportable
elsewhere on Form 1099-MISC, report the payments in
box 3. However, report section 530 (of the Revenue Act of
1978) worker payments in box 7.
Examples. The following are some examples of payments
to be reported in box 7.
• Professional service fees, such as fees to attorneys
(including corporations), accountants, architects, contractors,
engineers, etc.
• Fees paid by one professional to another, such as
fee-splitting or referral fees.
• Payments by attorneys to witnesses or experts in legal
adjudication.
• Payment for services, including payment for parts or
materials used to perform the services if supplying the parts
or materials was incidental to providing the service. For
example, report the total insurance company payments to an
auto repair shop under a repair contract showing an amount
for labor and another amount for parts, if furnishing parts was
incidental to repairing the auto.
• Commissions paid to nonemployee salespersons that are
subject to repayment but not repaid during the calendar year.
• A fee paid to a nonemployee, including an independent
contractor, or travel reimbursement for which the
nonemployee did not account to the payer, if the fee and
reimbursement total at least $600. To help you determine
whether someone is an independent contractor or an
employee, see Pub. 15-A.
-8-

Instructions for Form 1099-MISC (2019)

accrued while the securities were on loan. For this purpose, a
customer includes an individual, trust, estate, partnership,
association, company, or corporation. See Notice 2003-67,
which is on page 752 of Internal Revenue Bulletin 2003-40 at
IRS.gov/pub/irs-irbs/irb03-40.pdf. It does not include a
tax-exempt organization, the United States, any state, the
District of Columbia, a U.S. possession, or a foreign
government. File Form 1099-MISC with the IRS and furnish a
copy to the customer for whom you received the substitute
payment.

Nonqualified deferred compensation (section 409A) income. Include in box 7 the amount of all deferrals (plus
earnings) reported in box 15b that are includible in gross
income because the nonqualified deferred compensation
(NQDC) plan fails to satisfy the requirements of section
409A. See Regulations sections 1.409A-1 through 1.409A-6.
Golden parachute payments. A parachute payment is any
payment that meets all of the following conditions.
1. The payment is in the nature of compensation.
2. The payment is to, or for the benefit of, a disqualified
individual. A disqualified individual is one who at any time
during the 12-month period prior to and ending on the date of
the change in ownership or control of the corporation (the
disqualified individual determination period) was an
employee or independent contractor and was, in regard to
that corporation, a shareholder, an officer, or a highly
compensated individual.
3. The payment is contingent on a change in the
ownership of a corporation, the effective control of a
corporation, or the ownership of a substantial portion of the
assets of a corporation (a change in ownership or control).
4. The payment has (together with other payments
described in (1), (2), and (3), above, made to the same
individual) an aggregate present value of at least three times
the individual's base amount.

Box 9. Payer Made Direct Sales of $5,000 or
More

Enter an “X” in the checkbox for sales by you of $5,000 or
more of consumer products to a person on a buy–sell,
deposit–commission, or other commission basis for resale
(by the buyer or any other person) anywhere other than in a
permanent retail establishment. Do not enter a dollar amount
in this box.
If you are reporting an amount for direct sales of $5,000 or
more in box 7, you also may check box 9 on the same Form
1099-MISC.
The report you must give to the recipient for these direct
sales need not be made on the official form. It may be in the
form of a letter showing this information along with
commissions, prizes, awards, etc.

For more details, see Regulations section 1.280G-1. Also,
see Rev. Proc. 2003-68, which is on page 398 of Internal
Revenue Bulletin 2003-34 at IRS.gov/pub/irs-irbs/
irb03-34.pdf, concerning the valuation of stock options for
purposes of golden parachute payment rules. For the
treatment of unvested shares of restricted stock, see Rev.
Rul. 2005-39, available at IRS.gov/irb/2005-27_IRB/
ar08.html.
Independent contractor. Enter in box 7 the total
compensation, including any golden parachute payment. For
excess golden parachute payments, see the box 13 reporting
instructions.
For employee reporting of these payments, see Pub.
15-A.

Box 10. Crop Insurance Proceeds

Enter crop insurance proceeds of $600 or more paid to
farmers by insurance companies unless the farmer has
informed the insurance company that expenses have been
capitalized under section 278, 263A, or 447.

Box 13. Excess Golden Parachute Payments

Enter any excess golden parachute payments. An excess
parachute payment is the amount of the excess of any
parachute payment over the base amount (the average
annual compensation for services includible in the
individual's gross income over the most recent 5 tax years).
See Q/A-38 through Q/A-44 of Regulations section 1.280G-1
for how to compute the excess amount.

Payments not reported in box 7. Do not report in box 7:
• Expense reimbursements paid to volunteers of nonprofit
organizations;
• Deceased employee wages paid in the year after death
(report in box 3) (See Deceased employee's wages, earlier);
• Payments more appropriately described as rent (report in
box 1), royalties (report in box 2), other income not subject to
self-employment tax (report in box 3), interest (use Form
1099-INT);
• The cost of current life insurance protection (report on
Form W-2 or Form 1099-R);
• An employee's wages, travel or auto allowance, or
bonuses and prizes (report on Form W-2); and
• The cost of group-term life insurance paid on behalf of a
former employee (report on Form W-2).

See Golden parachute payments, earlier, for more
information.

Box 14. Gross Proceeds Paid to an Attorney

Enter gross proceeds of $600 or more paid to an attorney in
connection with legal services (regardless of whether the
services are performed for the payer). See Payments to
attorneys, earlier.

Box 15a. Section 409A Deferrals

You do not have to complete this box. For details, see Notice
2008-115, available at IRS.gov/irb/2008-52_IRB/ar10.html.
If you complete this box, enter the total amount deferred
during the year of at least $600 for the nonemployee under all
nonqualified plans. The deferrals during the year include
earnings on the current year and prior year deferrals. For
additional information, see Regulations sections 1.409A-1
through 1.409A-6.

Box 8. Substitute Payments in Lieu of Dividends
or Interest
Enter aggregate payments of at least $10 of substitute
payments received by a broker for a customer in lieu of
dividends or tax-exempt interest as a result of a loan of a
customer's securities. Substitute payment means a payment
in lieu of (a) a dividend, or (b) tax-exempt interest to the
extent that interest (including original issue discount) has
Instructions for Form 1099-MISC (2019)

For deferrals and earnings under NQDC plans for
employees, see the Instructions for Forms W-2 and W-3.
-9-

Box 15b. Section 409A Income

required to file paper copies of this form with a state tax
department. See Pub. 1220 for more information regarding
the Combined Federal/State Filing Program. They are
provided for your convenience only and need not be
completed for the IRS. Use the state information boxes to
report payments for up to two states. Keep the information for
each state separated by the dash line. If you withheld state
income tax on this payment, you may enter it in box 16. In
box 17, enter the abbreviated name of the state and the
payer's state identification number. The state number is the
payer's identification number assigned by the individual
state. In box 18, you may enter the amount of the state
payment.

Enter all amounts deferred (including earnings on amounts
deferred) that are includible in income under section 409A
because the NQDC plan fails to satisfy the requirements of
section 409A. Do not include amounts properly reported on a
Form 1099-MISC, corrected Form 1099-MISC, Form W-2, or
Form W-2c for a prior year. Also, do not include amounts that
are considered to be subject to a substantial risk of forfeiture
for purposes of section 409A. For additional information, see
Regulations sections 1.409A-1 through 1.409A-6; Notice
2008-113, available at IRS.gov/irb/2008-51_IRB/ar12.html;
Notice 2008-115; Notice 2010-6, available at IRS.gov/irb/
2010-03_IRB/ar08.html; and Notice 2010-80, available at
IRS.gov/irb/2010-51_IRB/ar08.html.
The amount included in box 15b also is includible in box 7.

If a state tax department requires that you send them a
paper copy of this form, use Copy 1 to provide information to
the state tax department. Give Copy 2 to the recipient for use
in filing the recipient's state income tax return.

Boxes 16–18. State Information

These boxes may be used by payers who participate in the
Combined Federal/State Filing Program and/or who are

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Instructions for Form 1099-MISC (2019)

Index
A
Agricultural workers, foreign 6
Armed Forces 2
Attorneys' fees and gross proceeds 2,
7, 9
B
Backup withholding 3, 6
Broker transactions 1, 9
C
Canceled debt 2
Coin-operated amusements 5
Commissions 4, 7
Construction project, escrow agent 4
Consumer products of $5,000, indicator
for 1, 9
Corporations, payments to 2, 3, 7
Corrections 5
Crop insurance proceeds 1, 9
D
Damages 5
Deceased employee's wages 3, 6
Difficulty-of-care payments 2
Directors' fees 4, 7
Direct sales of consumer products for
resale 1, 9
E
Excess golden parachute payments 9
Exchange of services 7
F
FATCA filing requirements 4–6
Fees 1, 2, 4, 7, 8

Fishing boat proceeds 6
Fish purchases for cash 3, 6, 8
Foreign agricultural workers 6
Form 1099-K 2
Former insurance salesperson,
termination payments 6, 8
Form W-9 3
G
Golden parachute payments 9
Gross proceeds, attorneys 2, 7, 9
H
Health care services, payments 1, 2, 7

O
Other income 5
P
Parking, value of 4
Payment card transactions 2, 6
Prizes and awards 5
Punitive damages 5
R
Rents 1, 5
Royalties 1, 5

L
Lottery ticket agents, commissions 4, 8

S
Scholarships 2
Section 409A deferrals 9
Section 409A income 9, 10
Section 530 worker 4, 7, 8
Self-employment tax 7
State and local sales taxes 4
Substitute payments in lieu of dividends
or tax-exempt interest 1, 9

M
Medical payments 2
Medical research payments 6
Medical services payments 7
Military differential payments 2
Miscellaneous income 1

T
Taxpayer identification number 3
Termination payments, insurance
salespeople 6, 8
Trade or business 1
Transit passes 4

N
Nonemployee compensation (NEC) 7
Nonqualified deferred compensation 9,
10

W
Withholding:
Backup 3, 6
Indian gaming 4, 6

I
Independent contractor payments 4, 7
Indian gaming profits 4
Informants, fees 2

-11-