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Department of the Treasury
Internal Revenue Service
Instructions for Forms

1099-MISC and 1099-NEC

(Rev. January 2022)
Miscellaneous Information and Nonemployee Compensation

Section references are to the Internal Revenue Code unless corporation who is engaged in catching fish. For further
otherwise noted. information, see the instructions for box 11, later.
Form 1099-NEC, box 1. Box 1 will not be used for reporting
Future Developments
under section 6050R, regarding cash payments for the
For the latest information about developments related to purchase of fish for resale purposes.
Forms 1099-MISC and 1099-NEC and their instructions,
such as legislation enacted after they were published, go to Form 1099-NEC, box 2. Payers may use either box 2 on
IRS.gov/Form1099MISC or IRS.gov/Form1099NEC. Form 1099-NEC or box 7 on Form 1099-MISC to report any
sales totaling $5,000 or more of consumer products for
What’s New resale, on a buy-sell, a deposit-commission, or any other
basis. For further information, see the instructions later for
Continuous-use form and instructions. Form box 2 (Form 1099-NEC) or box 7 (Form 1099-MISC).
1099-MISC, Form 1099-NEC, and these instructions have
been converted from an annual revision to continuous use. Online fillable copies. To ease statement furnishing
Both the forms and instructions will be updated as needed. requirements, Copies B, C, 1, and 2 have been made fillable
For the most recent version, go to IRS.gov/Form1099MISC online in a PDF format available at IRS.gov/Form1099MISC
or IRS.gov/Form1099NEC. and IRS.gov/Form1099NEC. You can complete these copies
online for furnishing statements to recipients and for retaining
New box 13. Box number 13 has been assigned to the in your own files.
Foreign Account Tax Compliance Act (FATCA) filing
requirement checkbox. Subsequently, old box numbers 13 Filing dates. Section 6071(c) requires you to file Form
through 17 have been renumbered to new box numbers 14 1099-NEC on or before January 31, using either paper or
through 18, respectively. electronic filing procedures. File Form 1099-MISC by
February 28, if you file on paper, or March 31, if you file
Electronic filing of returns. The Taxpayer First Act of electronically.
2019, enacted July 1, 2019, authorized the Department of the
Treasury and the IRS to issue regulations that reduce the
250-return requirement. If those regulations are finalized, Specific Instructions for Form
they will be effective for tax years 2022 and beyond, with first
1099-MISC
filing requirements in 2023. We will post an article at IRS.gov
explaining the change. File Form 1099-MISC, Miscellaneous Information, for each
person in the course of your business to whom you have paid
Reminders the following during the year.
• At least $10 in royalties (see the instructions for box 2) or
General instructions. In addition to these specific broker payments in lieu of dividends or tax-exempt interest
instructions, you should also use the current year General (see the instructions for box 8).
Instructions for Certain Information Returns. Those general • At least $600 in:
instructions include information about the following topics.
1. Rents (box 1);
• Who must file.
• When and where to file. 2. Prizes and awards (box 3);
• Electronic reporting. 3. Other income payments (box 3);
• Corrected and void returns. 4. Generally, the cash paid from a notional principal
• Statements to recipients. contract to an individual, partnership, or estate (box 3);
• Taxpayer identification numbers (TINs).
• Backup withholding. 5. Any fishing boat proceeds (box 5);
• Penalties. 6. Medical and health care payments (box 6);
• The definitions of terms applicable for the purposes of 7. Crop insurance proceeds (box 9);
chapter 4 of the Internal Revenue Code that are referenced 8. Gross proceeds paid to an attorney (box 10) (see
in these instructions. Payments to attorneys, later);
• Other general topics.
9. Section 409A deferrals (box 12); or
You can get the general instructions from General
Instructions for Certain Information Returns at IRS.gov/ 10. Nonqualified deferred compensation (box 15).
1099GeneralInstructions or go to IRS.gov/Form1099MISC or You may either file Form 1099-MISC (box 7) or Form
IRS.gov/Form1099NEC. 1099-NEC (box 2) to report sales totaling $5,000 or more of
Form 1099-MISC, box 11. Box 11 includes any reporting consumer products to a person on a buy-sell, a
under section 6050R, regarding cash payments for the deposit-commission, or other commission basis for resale.
purchase of fish for resale purposes, from an individual or

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If you use Form 1099-NEC to report sales totaling For example, a person who, in the course of a trade or
! $5,000 or more, then you are required to file Form business, pays $600 of taxable damages to a claimant by
CAUTION 1099-NEC with the IRS by January 31. paying that amount to a claimant's attorney is required to:
• Furnish Form 1099-MISC to the claimant, reporting
You must also file Form 1099-MISC for each person from damages pursuant to section 6041, generally in box 3; and
whom you have withheld any federal income tax (report in • Furnish Form 1099-MISC to the claimant’s attorney,
box 4) under the backup withholding rules regardless of the reporting gross proceeds paid pursuant to section 6045(f) in
amount of the payment. box 10.
Be sure to report each payment in the proper box For more examples and exceptions relating to payments
to attorneys, see Regulations section 1.6045-5.
! because the IRS uses this information to determine
CAUTION whether the recipient has properly reported the However, these rules do not apply to wages paid to
payment. attorneys that are reportable on Form W-2, Wage and Tax
Statement, or to profits distributed by a partnership to its
Trade or business reporting only. Report on Form partners that are reportable on Schedule K-1 (Form 1065).
1099-MISC only when payments are made in the course of Payments to corporations for legal services. The
your trade or business. Personal payments are not exemption from reporting payments made to corporations
reportable. You are engaged in a trade or business if you does not apply to payments for legal services. Therefore, you
operate for gain or profit. However, nonprofit organizations must report attorneys' fees (in box 1 of Form 1099-NEC) or
are considered to be engaged in a trade or business and are gross proceeds (in box 10 of Form 1099-MISC), as
subject to these reporting requirements. Other organizations described earlier, to corporations that provide legal services.
subject to these reporting requirements include trusts of Taxpayer identification numbers (TINs). To report
qualified pension or profit-sharing plans of employers, certain payments to an attorney on Form 1099-MISC, you must
organizations exempt from tax under section 501(c) or (d), obtain the attorney's TIN. You may use Form W-9 to obtain
farmers' cooperatives that are exempt from tax under section the attorney's TIN. An attorney is required to promptly supply
521, and widely held fixed investment trusts. Payments by its TIN whether it is a corporation or other entity, but the
federal, state, or local government agencies are also attorney is not required to certify its TIN. If the attorney fails to
reportable. provide its TIN, the attorney may be subject to a penalty
Reportable payments to corporations. The following under section 6723 and its regulations, and you must backup
payments made to corporations must generally be reported withhold on the reportable payments.
on Form 1099-MISC. Deceased employee's wages. When an employee dies
• Cash payments for the purchase of fish for resale reported during the year, you must report the accrued wages, vacation
in box 11. pay, and other compensation paid after the date of death. If
• Medical and health care payments reported in box 6. you made the payment in the same year the employee died,
• Substitute payments in lieu of dividends or tax-exempt you must withhold social security and Medicare taxes on the
interest reported in box 8. payment and report them only as social security and
• Gross proceeds paid to an attorney reported in box 10. Medicare wages on the employee's Form W-2 to ensure that
Payments to attorneys. The term “attorney” includes a law proper social security and Medicare credit is received. On
firm or other provider of legal services. Attorneys' fees of the Form W-2, show the payment as social security wages
$600 or more paid in the course of your trade or business are (box 3) and Medicare wages and tips (box 5) and the social
reportable in box 1 of Form 1099-NEC, under section security and Medicare taxes withheld in boxes 4 and 6; do
6041A(a)(1). not show the payment in box 1 of Form W-2.
Gross proceeds paid to attorneys. Under section If you made the payment after the year of death, do not
6045(f), report in box 10 payments that: report it on Form W-2 and do not withhold social security and
• Are made to an attorney in the course of your trade or Medicare taxes.
business in connection with legal services, but not for the Whether the payment is made in the year of death or after
attorney’s services, for example, as in a settlement the year of death, you must also report the payment to the
agreement; estate or beneficiary on Form 1099-MISC. Report the
• Total $600 or more; and payment in box 3 (rather than as nonemployee
• Are not reportable by you in box 1 of Form 1099-NEC. compensation). See the Example that follows. Enter the
Generally, you are not required to report the claimant's name and TIN of the payment recipient on Form 1099-MISC.
attorney's fees. For example, an insurance company pays a For example, if the recipient is an individual beneficiary, enter
claimant's attorney $100,000 to settle a claim. The insurance the name and social security number of the individual; if the
company reports the payment as gross proceeds of recipient is the estate, enter the name and employer
$100,000 in box 10. However, the insurance company does identification number of the estate. The general backup
not have a reporting requirement for the claimant's attorney's withholding rules apply to this payment.
fees subsequently paid from these funds. Death benefits from nonqualified deferred compensation
These rules apply whether or not: plans or section 457 plans paid to the estate or beneficiary of
• The legal services are provided to the payer; a deceased employee are reportable on Form 1099-MISC.
• The attorney is the exclusive payee (for example, the Do not report these death benefits on Form 1099-R.
attorney's and claimant's names are on one check); or However, if the benefits are from a qualified plan, report them
• Other information returns are required for some or all of a on Form 1099-R. See the Instructions for Forms 1099-R and
payment under another section of the Code, such as section 5498.
6041. Example. Before Employee A's death on June 15, 2022,
A was employed by Employer X and received $10,000 in

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wages on which federal income tax of $1,500 was withheld. Payments for which a Form 1099-MISC is not required
When A died, X owed A $2,000 in wages and $1,000 in include all of the following.
accrued vacation pay. The total of $3,000 (less the social • Generally, payments to a corporation (including a limited
security and Medicare taxes withheld) was paid to A's estate liability company (LLC) that is treated as a C or S
on July 20, 2022. Because X made the payment during the corporation). However, see Reportable payments to
year of death, X must withhold social security and Medicare corporations, earlier.
taxes on the $3,000 payment and must complete Form W-2 • Payments for merchandise, telegrams, telephone, freight,
as follows. storage, and similar items.
• Box 1—10000.00 (does not include the $3,000 accrued • Payments of rent to real estate agents or property
wages and vacation pay). managers. However, the real estate agent or property
• Box 2—1500.00. manager must use Form 1099-MISC to report the rent paid
• Box 3—13000.00 (includes the $3,000 accrued wages over to the property owner. See Regulations section
and vacation pay). 1.6041-3(d); Regulations section 1.6041-1(e)(5), Example 5;
• Box 4—806.00 (social security tax withheld). and the instructions for box 1.
• Box 5—13000.00 (includes the $3,000 accrued wages • Wages paid to employees (report on Form W-2).
and vacation pay). • Military differential wage payments made to employees
• Box 6—188.50 (Medicare tax withheld). while they are on active duty in the U.S. Armed Forces or
Employer X must also complete Form 1099-MISC as other uniformed services (report on Form W-2).
follows. • Business travel allowances paid to employees (may be
• Boxes for recipient's name, address, and TIN—The reportable on Form W-2).
estate’s or beneficiary's name, address, and TIN. • Cost of current life insurance protection (report on Form
• Box 3—3000.00 (Even though amounts were withheld for W-2 or Form 1099-R).
social security and Medicare taxes, the gross amount is • Payments to a tax-exempt organization including
reported here.) tax-exempt trusts (IRAs, HSAs, Archer MSAs, Coverdell
ESAs, and ABLE (529A) accounts), the United States, a
If Employer X made the payment after the year of death, state, the District of Columbia, a U.S. possession or territory,
the $3,000 would not be subject to social security and or a foreign government.
Medicare taxes and would not be shown on Form W-2. Payments made to or for homeowners from the HFA
•
However, the employer would still file Form 1099-MISC. Hardest Hit Fund or similar state program (report on Form
Payments made on behalf of another person. For 1098-MA).
payments reportable under section 6041, if you make a • Compensation for injuries or sickness by the Department
payment on behalf of another person who is the source of the of Justice as a public safety officer disability or survivor's
funds, you may be responsible for filing Form 1099-MISC. benefit, or under a state program that provides benefits for
You are the payor for information reporting purposes if you surviving dependents of a public safety officer who has died
perform management or oversight functions in connection as the direct and proximate result of a personal injury
with the payment, or have a significant economic interest in sustained in the line of duty.
the payment (such as a lien). For example, a bank that • Compensation for wrongful incarceration for any criminal
provides financing to a real estate developer for a offense for which there was a conviction under federal or
construction project maintains an account from which it state law. See section 139F, Certain amounts received by
makes payments for services in connection with the project. wrongfully incarcerated individuals.
The bank performs management and oversight functions Form 1099-K. Payments made with a credit card or
over the payments and is responsible for filing information payment card and certain other types of payments, including
returns for payments of $600 or more paid to contractors. For third-party network transactions, must be reported on Form
more information, see Regulations section 1.6041-1(e). 1099-K by the payment settlement entity under section
Indian gaming profits, payments to tribal members. If 6050W and are not subject to reporting on Form 1099-MISC.
you make payments to members of Indian tribes from the net See the separate Instructions for Form 1099-K.
revenues of class II or class III gaming activities conducted or Fees paid to informers. A payment to an informer as an
licensed by the tribes, you must withhold federal income tax award, fee, or reward for information about criminal activity
on such payments. File Form 1099-MISC to report the does not have to be reported if the payment is made by a
payments and withholding to tribal members. Report the federal, state, or local government agency, or by a nonprofit
payments in box 3 and the federal income tax withheld in organization exempt from tax under section 501(c)(3) that
box 4. Pub. 15-A contains the necessary Tables for makes the payment to further the charitable purpose of
Withholding on Distributions of Indian Gaming Profits to lessening the burdens of government. For more information,
Tribal Members. see Regulations section 1.6041-3(l).
State or local sales taxes. If state or local sales taxes are Scholarships. Do not use Form 1099-MISC to report
imposed on the service provider and you (as the buyer) pay scholarship or fellowship grants. Scholarship or fellowship
them to the service provider, report them on Form grants that are taxable to the recipient because they are paid
1099-MISC as part of the reportable payment. However, if for teaching, research, or other services as a condition for
sales taxes are imposed on you (as the buyer) and collected receiving the grant are considered wages and must be
from you by the service provider, do not report the sales reported on Form W-2. Other taxable scholarship or
taxes on Form 1099-MISC. fellowship payments (to a degree or nondegree candidate)
do not have to be reported to the IRS on any form, unless
Exceptions
section 6050S requires reporting of such amounts by an
Some payments do not have to be reported on Form educational institution on Form 1098-T. See section 117(b)–
1099-MISC, although they may be taxable to the recipient. (d) and Regulations section 1.6041-3(n) for more information.

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Canceled debt. A canceled debt is not reportable on Form For information on the TIN Matching System offered
1099-MISC. Canceled debts reportable under section 6050P TIP by the IRS, see the current year General Instructions
must be reported on Form 1099-C. See the Instructions for for Certain Information Returns.
Forms 1099-A and 1099-C.
Employee business expense reimbursements. Do not Corrections to Form 1099-MISC
use Form 1099-MISC to report employee business expense If you need to correct a Form 1099-MISC that you have
reimbursements. Report payments made to employees already sent to the IRS:
under a nonaccountable plan as wages on Form W-2. • For paper forms, see part H in the current year General
Generally, payments made to employees under an Instructions for Certain Information Returns; or
accountable plan are not reportable on Form W-2, except in • For electronic corrections, see Pub. 1220.
certain cases when you pay a per diem or mileage If you are filing a correction on a paper form, do not
allowance. For more information, see the General ! check the VOID box on the form. A checked VOID
Instructions for Forms W-2 and W-3, and Pub. 463. For CAUTION box alerts IRS scanning equipment to ignore the form
information on reporting employee moving expense and proceed to the next one. Your correction will not be
reimbursements on Form W-2, see the General Instructions entered into IRS records if you check the VOID box.
for Forms W-2 and W-3.
Widely held fixed investment trusts (WHFITs). Trustees Recipient's TIN
and middlemen of WHFITs must report items of gross Enter the recipient's TIN using hyphens in the proper format.
income attributable to a trust income holder (TIH) on the SSNs, ITINs, and ATINs should be in the XXX-XX-XXXX
appropriate Form 1099. A tax information statement that format. EINs should be in the XX-XXXXXXX format. You
includes the information provided to the IRS on Forms 1099, should make every effort to ensure that you have the correct
as well as additional information identified in Regulations type of number reported in the correct format.
section 1.671-5(e), must be furnished to TIHs. For details,
see the current year General Instructions for Certain Account Number
Information Returns.
The account number is required if you have multiple
Statements to Recipients accounts for a recipient for whom you are filing more than
one Form 1099-MISC. The account number is also required if
If you are required to file Form 1099-MISC, you must furnish you check the “FATCA filing requirement” box. See Box 13,
a statement to the recipient. For more information about the later. Additionally, the IRS encourages you to designate an
requirement to furnish a statement to each recipient, and account number for all Forms 1099-MISC that you file. See
truncation, see part M in the current year General Instructions part L in the current year General Instructions for Certain
for Certain Information Returns. Information Returns.
You can furnish each recipient with a single payee
statement reporting all Form 1099-MISC payment types. You Box 1. Rents
are required to furnish the payee statements by January 31 Enter amounts of $600 or more for all types of rents, such as
and file with the IRS by February 28 (March 31, if filing any of the following.
electronically). • Real estate rentals paid for office space. However, you do
Truncating recipient’s TIN on payee statements. not have to report these payments on Form 1099-MISC if you
Pursuant to Regulations section 301.6109-4, all filers of this paid them to a real estate agent or property manager. But the
form may truncate a recipient’s TIN (social security number real estate agent or property manager must use Form
(SSN), individual taxpayer identification number (ITIN), 1099-MISC to report the rent paid over to the property owner.
adoption taxpayer identification number (ATIN), or employer See Regulations section 1.6041-3(d) and Regulations
identification number (EIN)) on payee statements. Truncation section 1.6041-1(e)(5), Example 5.
is not allowed on any documents the filer files with the IRS. A • Machine rentals (for example, renting a bulldozer to level
payer's TIN may not be truncated on any form. See part J in your parking lot). If the machine rental is part of a contract
the current year General Instructions for Certain Information that includes both the use of the machine and the operator,
Returns. prorate the rental between the rent of the machine (report
that in box 1) and the operator's charge (report that on Form
2nd TIN Not. 1099-NEC in box 1).
• Pasture rentals (for example, farmers paying for the use of
You may enter an “X” in this box if you were notified by the grazing land).
IRS twice within 3 calendar years that the payee provided an
incorrect TIN. If you mark this box, the IRS will not send you Public housing agencies must report in box 1 rental
any further notices about this account. assistance payments made to owners of housing projects.
However, if you received both IRS notices in the same See Rev. Rul. 88-53, 1988-1 C.B. 384.
year, or if you received them in different years but they both Coin-operated amusements. If an arrangement between
related to information returns filed for the same year, do not an owner of coin-operated amusements and an owner of a
check the box at this time. For purposes of the business establishment where the amusements are placed is
two-notices-in-3-years rule, you are considered to have a lease of the amusements or the amusement space, the
received one notice and you are not required to send a owner of the amusements or the owner of the space,
second “B” notice to the taxpayer on receipt of the second whoever makes the payments, must report the lease
notice. See part N in the current year General Instructions for payments in box 1 of Form 1099-MISC if the payments total
Certain Information Returns for more information. 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

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information necessary to report the partner's share of the 1. Payments as explained earlier under Deceased
taxable income. Coin-operated amusements include video employee's wages.
games, pinball machines, jukeboxes, pool tables, slot 2. Payments as explained earlier under Indian gaming
machines, and other machines and gaming devices operated profits, payments to tribal members.
by coins or tokens inserted into the machines by individual
users. For more information, see Rev. Rul. 92-49, 1992-1 3. A payment or series of payments made to individuals
C.B. 433. for participating in a medical research study or studies.
4. Termination payments to former self-employed
Box 2. Royalties insurance salespeople. These payments are not subject to
Enter gross royalty payments (or similar amounts) of $10 or self-employment tax and are reportable in box 3 (rather than
more. Report royalties from oil, gas, or other mineral box 1 of Form 1099-NEC) if all the following apply.
properties before reduction for severance and other taxes
that may have been withheld and paid. Do not include a. The payments are received from an insurance
surface royalties. They should be reported in box 1. Do not company because of services performed as an insurance
report oil or gas payments for a working interest in box 2; salesperson for the company.
report payments for working interests in box 1 of Form b. The payments are received after termination of the
1099-NEC. Do not report timber royalties made under a salesperson's agreement to perform services for the
pay-as-cut contract; report these timber royalties on Form company.
1099-S. c. The salesperson did not perform any services for the
Use box 2 to report royalty payments from intangible company after termination and before the end of the year.
property such as patents, copyrights, trade names, and d. The salesperson enters into a covenant not to
trademarks. Report the gross royalties (before reduction for compete against the company for at least 1 year after the
fees, commissions, or expenses) paid by a publisher directly date of termination.
to an author or literary agent, unless the agent is a e. The amount of the payments depends primarily on
corporation. The literary agent (whether or not a corporation) policies sold by the salesperson or credited to the
that receives the royalty payment on behalf of the author salesperson's account during the last year of the service
must report the gross amount of royalty payments to the agreement or to the extent those policies remain in force for
author on Form 1099-MISC whether or not the publisher some period after termination, or both.
reported the payment to the agent on its Form 1099-MISC.
f. The amount of the payments does not depend at all on
Box 3. Other Income length of service or overall earnings from the company
(regardless of whether eligibility for payment depends on
Enter other income of $600 or more required to be reported length of service).
on Form 1099-MISC that is not reportable in one of the other
boxes on the form. If the termination payments do not meet all these
requirements, report them in box 1 of Form 1099-NEC.
Also enter in box 3 prizes and awards that are not for 5. Generally, all punitive damages, any damages for
services performed. Include the fair market value (FMV) of nonphysical injuries or sickness, and any other taxable
merchandise won on game shows. Also include amounts damages. Report punitive damages even if they relate to
paid to a winner of a sweepstakes not involving a wager. If a physical injury or physical sickness. Generally, report all
wager is made, report the winnings on Form W-2G. compensatory damages for nonphysical injuries or sickness,
If, not later than 60 days after the winner becomes such as employment discrimination or defamation. However,
TIP entitled to the prize, the winner can choose the do not report damages (other than punitive damages):
option of a lump sum or an annuity payable over at a. Received on account of personal physical injuries or
least 10 years, the payment of winnings is considered made physical sickness;
when actually paid. If the winner chooses an annuity, file
Form 1099-MISC each year to report the annuity paid during b. That do not exceed the amount paid for medical care
that year. for emotional distress;
c. Received on account of nonphysical injuries (for
Do not include wages, any bonuses, prizes, and awards example, emotional distress) under a written binding
paid to your employees. Report these on Form W-2. Do not agreement, court decree, or mediation award in effect on or
include in box 3 prizes and awards for services performed by issued by September 13, 1995; or
nonemployees, such as an award for the top commission d. That are for a replacement of capital, such as
salesperson. Report them in box 1 of Form 1099-NEC. damages paid to a buyer by a contractor who failed to
complete construction of a building.
Prizes and awards received in recognition of past
accomplishments in religious, charitable, scientific, artistic, Damages received on account of emotional distress,
educational, literary, or civic fields are not reportable if: including physical symptoms such as insomnia, headaches,
• The winners are chosen without action on their part, and stomach disorders, are not considered received for a
• The winners are not expected to perform future services, physical injury or physical sickness and are reportable unless
and described in item 5b or 5c above. However, damages
• The payer transfers the prize or award to a charitable received on account of emotional distress due to physical
organization or governmental unit under a designation made injuries or physical sickness are not reportable.
by the recipient. See Rev. Proc. 87-54, 1987-2 C.B. 669. 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.

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Taxable back pay damages may be wages and information reporting. You are not required to report
TIP reportable on Form W-2. See Pub. 957. payments to pharmacies for prescription drugs.
The exemption from issuing Form 1099-MISC to a
Foreign agricultural workers. Report in box 3 corporation does not apply to payments for medical or health
compensation of $600 or more paid in a calendar year to an care services provided by corporations, including
H-2A visa agricultural worker who did not give you a valid professional corporations. However, you are not required to
TIN. You must also withhold federal income tax under the report payments made to a tax-exempt hospital or extended
backup withholding rules. For more information, go to care facility or to a hospital or extended care facility owned
IRS.gov and enter “foreign agricultural workers” in the search and operated by the United States (or its possessions or
box. territories), a state, the District of Columbia, or any of their
political subdivisions, agencies, or instrumentalities.
Account reported under FATCA. If you are an foreign
financial institution (FFI) reporting pursuant to an election Generally, payments made under a flexible spending
described in Regulations section 1.1471-4(d)(5)(i)(A) a U.S. ! arrangement (as defined in section 106(c)(2)) or a
account required to be reported under chapter 4 to which CAUTION health reimbursement arrangement which is treated
during the year you made no payments reportable on an as employer-provided coverage under an accident or health
applicable Form 1099, enter zero in box 3. In addition, if you plan for purposes of section 106 are exempt from the
are an FFI described in the preceding sentence and, during reporting requirements of section 6041.
the year, you made payments to the account required to be
reported under chapter 4, but those payments are not Box 7. Payer Made Direct Sales Totaling $5,000
reportable on an applicable Form 1099 (for example, or More
because the payment is under the applicable reporting
Enter an “X” in the checkbox for sales by you totaling $5,000
threshold), you must report the account on this Form
or more of consumer products to a person on a buy-sell,
1099-MISC and enter zero in box 3.
deposit-commission, or other commission basis for resale
Box 4. Federal Income Tax Withheld (by the buyer or any other person) anywhere other than in a
permanent retail establishment. Do not enter a dollar amount
Enter backup withholding. For example, persons who have in this box.
not furnished their TINs to you are subject to withholding on
payments required to be reported in boxes 1, 2 (net of You may either use box 7 on Form 1099-MISC or box 2 on
severance taxes), 3, 5 (only with respect to cash payments to Form 1099-NEC to report the direct sales totaling $5,000 or
crew members for their share of proceeds from the catch), 6, more. If you use Form 1099-NEC to report these sales, then
8, 9, and 10. For more information on backup withholding, you are required to file the Form 1099-NEC with the IRS by
including the rate, see part N in the current year General January 31.
Instructions for Certain Information Returns. Report these sales on only one form.
Also enter any income tax withheld from payments to CAUTION!
members of Indian tribes from the net revenues of class II or
class III gaming activities conducted or licensed by the tribes. 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
Box 5. Fishing Boat Proceeds form of a letter showing this information along with
If you are the operator of a fishing boat, enter the individual's commissions, prizes, awards, etc.
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 Box 8. Substitute Payments in Lieu of Dividends
normally fewer than 10 crew members. A fishing boat has or Interest
normally fewer than 10 crew members if the average size of Enter aggregate payments of at least $10 of substitute
the operating crew was fewer than 10 on trips during the payments received by a broker for a customer in lieu of
preceding 4 calendar quarters. dividends or tax-exempt interest as a result of a loan of a
customer's securities. Substitute payment means a payment
In addition, report cash payments of up to $100 per trip
in lieu of:
that are contingent on a minimum catch and are paid solely
for additional duties (such as mate, engineer, or cook) for 1. A dividend, or
which additional cash payments are traditional in the 2. Tax-exempt interest to the extent that interest
industry. However, do not report on Form 1099-MISC any (including original issue discount) has accrued while the
wages reportable on Form W-2. securities were on a loan.
Box 6. Medical and Health Care Payments For this purpose, a customer includes an individual, trust,
estate, partnership, association, company, or corporation.
Enter payments of $600 or more made in the course of your
See Notice 2003-67, which is on page 752 of Internal
trade or business to each physician or other supplier or
Revenue Bulletin 2003-40 at IRS.gov/irb/
provider of medical or health care services. Include
2003-40_IRB#NOT-2003-67. It does not include a
payments made by medical and health care insurers under
tax-exempt organization, the United States, any state, the
health, accident, and sickness insurance programs. If
District of Columbia, a U.S. possession or territory, or a
payment is made to a corporation, list the corporation as the
foreign government. File Form 1099-MISC with the IRS and
recipient rather than the individual providing the services.
furnish a copy to the customer for whom you received the
Payments to persons providing health care services often
substitute payment.
include charges for injections, drugs, dentures, and similar
items. In these cases, the entire payment is subject to

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Box 9. Crop Insurance Proceeds See Q/A-38 through Q/A-44 of Regulations section 1.280G-1
Enter crop insurance proceeds of $600 or more paid to for how to compute the excess amount.
farmers by insurance companies unless the farmer has See Golden parachute payments, later, for more
informed the insurance company that expenses have been information.
capitalized under section 278, 263A, or 447.
Box 15. Nonqualified Deferred Compensation
Box 10. Gross Proceeds Paid to an Attorney
Enter all amounts deferred (including earnings on amounts
Enter gross proceeds of $600 or more paid to an attorney in deferred) that are includible in income under section 409A
connection with legal services (regardless of whether the because the NQDC plan fails to satisfy the requirements of
services are performed for the payer). See Payments to section 409A. Do not include amounts properly reported on a
attorneys, earlier. Form 1099-MISC, corrected Form 1099-MISC, Form W-2, or
Form W-2c for a prior year. Also, do not include amounts that
Box 11. Fish Purchased for Resale are considered to be subject to a substantial risk of forfeiture
If you are in the trade or business of purchasing fish for for purposes of section 409A. For additional information, see
resale, you must report total cash payments of $600 or more Regulations sections 1.409A-1 through 1.409A-6; Notice
paid during the year to any person who is engaged in the 2008-113, available at IRS.gov/irb/
trade or business of catching fish. You are required to keep 2008-51_IRB#NOT-2008-113 Notice 2008-115; ; Notice
records showing the date and amount of each cash payment 2010-6, available at IRS.gov/irb/2010-03_IRB#NOT-2010-6;
made during the year, but you must report only the total and Notice 2010-80, available at IRS.gov/irb/
amount paid for the year on Form 1099-MISC. 2010-51_IRB#NOT-2010-80.

"Fish" means all fish and other forms of aquatic life. Boxes 16–18. State Information
"Cash" means U.S. and foreign coin and currency and a
These boxes may be used by payers who participate in the
cashier's check, bank draft, traveler's check, or money order.
Combined Federal/State Filing Program and/or who are
Cash does not include a check drawn on your personal or
required to file paper copies of this form with a state tax
business account.
department. See Pub. 1220 for more information regarding
Box 12. Section 409A Deferrals the Combined Federal/State Filing Program. They are
provided for your convenience only and need not be
You do not have to complete this box. For details, see Notice completed for the IRS. Use the state information boxes to
2008-115, available at IRS.gov/irb/ report payments for up to two states. Keep the information for
2008-52_IRB#NOT-2008-115. each state separated by the dash line. If you withheld state
income tax on this payment, you may enter it in box 16. In
If you complete this box, enter the total amount deferred
box 17, enter the abbreviated name of the state and the
during the year of at least $600 for the nonemployee under all
payer's state identification number. The state number is the
nonqualified plans. The deferrals during the year include
payer's identification number assigned by the individual
earnings on the current year and prior year deferrals. For
state. In box 18, you may enter the amount of the state
additional information, see Regulations sections 1.409A-1
payment.
through 1.409A-6. See the instructions for box 15, later.
If a state tax department requires that you send them a
For deferrals and earnings under non qualified deferred paper copy of this form, use Copy 1 to provide information to
compensation (NQDC) plans for employees, see the General the state tax department. Give Copy 2 to the recipient for use
Instructions for Forms W-2 and W-3. in filing the recipient's state income tax return.
Box 13. FATCA Filing Requirement Checkbox
Check this box if you are a U.S. payer that is reporting on Specific Instructions for Form
Form(s) 1099 (including reporting payments on this Form 1099-NEC
1099-MISC) as part of satisfying your requirement to report
with respect to a U.S. account for the purposes of chapter 4 File Form 1099-NEC, Nonemployee Compensation, for each
of the Internal Revenue Code, as described in Regulations person in the course of your business to whom you have paid
section 1.1471-4(d)(2)(iii)(A). In addition, check the box if you the following during the year.
are an FFI reporting payments to a U.S. account pursuant to • At least $600 in:
an election described in Regulations section 1.1471-4(d)(5) 1. Services performed by someone who is not your
(i)(A). Finally, check the box if you are an FFI making the employee (including parts and materials) (box 1); or
election described in Regulations section 1.1471-4(d)(5)(i) 2. Payments to an attorney (box 1). (See Payments to
(A) and are reporting a U.S. account for chapter 4 purposes attorneys, later.)
to which you made no payments during the year that are
reportable on any applicable Form 1099 (or are reporting a File Form 1099-NEC or Form 1099-MISC to report sales
U.S. account to which you made payments during the year totaling $5,000 or more of consumer products to a person on
that do not reach the applicable reporting threshold for any a buy-sell, a deposit-commission, or other commission basis
applicable Form 1099). for resale.
If you use Form 1099-NEC to report sales totaling
Box 14. Excess Golden Parachute Payments ! $5,000 or more, then you are required to file Form
Enter any excess golden parachute payments. An excess CAUTION 1099-NEC with the IRS by January 31.
parachute payment is the amount over the base amount (the
average annual compensation for services includible in the You must also file Form 1099-NEC for each person from
individual's gross income over the most recent 5 tax years). whom you have withheld any federal income tax (report in

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box 4) under the backup withholding rules regardless of the Section 530 of the Revenue Act of 1978, as
amount of the payment. TIP extended by section 269(c) of P.L. 97-248, deals with
the employment tax status of independent
Be sure to report each payment in the proper box
contractors and employees. To qualify for relief under section
! because the IRS uses this information to determine 530, employers must file Form 1099-NEC. Additional
CAUTION whether the recipient has properly reported the
requirements for relief are discussed in Rev. Proc. 85-18,
payment.
1985-1 C.B. 518. Also see Pub. 15-A for special rules that
Trade or business reporting only. Report on Form may apply to technical service specialists and test proctors
1099-NEC only when payments are made in the course of and room supervisors.
your trade or business. Personal payments are not
Transit passes and parking for independent contrac-
reportable. You are engaged in a trade or business if you
tors. Although you cannot provide qualified transportation
operate for gain or profit. However, nonprofit organizations
fringes to independent contractors, the working condition and
are considered to be engaged in a trade or business and are
de minimis fringe rules for transit passes and parking apply to
subject to these reporting requirements. Other organizations
independent contractors. Tokens or farecards that enable an
subject to these reporting requirements include trusts of
independent contractor to commute on a public transit
qualified pension or profit-sharing plans of employers, certain
system (not including privately operated van pools) are
organizations exempt from tax under section 501(c) or
excludable from the independent contractor's gross income
501(d), farmers' cooperatives that are exempt from tax under
and are not reportable on Form 1099-NEC if their value in
section 521, and widely held fixed investment trusts.
any month is $21 or less. However, if the value of a pass
Payments by federal, state, or local government agencies are
provided in a month is greater than $21, the full value is part
also reportable.
of the gross income and must be reported on Form
Reportable payments to corporations. The following 1099-NEC. The value of parking may be excludable from an
payments made to corporations must generally be reported independent contractor's gross income, and, therefore, not
on Form 1099-NEC. reportable on Form 1099-NEC if certain requirements are
• Attorneys' fees reported in box 1. met. See Regulations section 1.132-9(b), Q/A-24.
• Payments by a federal executive agency for services
Directors' fees. You must report directors' fees and other
(vendors) reported in box 1.
remuneration, including payments made after retirement, on
Federal executive agencies may also have to file Form 1099-NEC in the year paid. Report them in box 1.
! Form 8596, Information Return for Federal Contracts, Commissions paid to lottery ticket sales agents. A state
CAUTION and Form 8596-A, Quarterly Transmittal of
that has control over and responsibility for online and instant
Information Returns for Federal Contracts, if a contracted
lottery games must file Form 1099-NEC to report
amount for personal services is more than $25,000. See Rev.
commissions paid, whether directly or indirectly, to licensed
Rul. 2003-66, which is on page 1115 of Internal Revenue
sales agents. For example, State X retains control over and
Bulletin 2003-26 at IRS.gov/pub/irs-irbs/irb03-26.pdf for
liability for online and instant lottery games. For online ticket
details.
sales, State X pays commissions by allowing an agent to
Payments to attorneys. The term “attorney” includes a law retain 5% of the ticket proceeds the agent remits to State X.
firm or other provider of legal services. Attorneys' fees of For instant ticket sales, State X pays commissions by
$600 or more paid in the course of your trade or business are providing tickets to the agent for 5% less than the proceeds
reportable in box 1 of Form 1099-NEC, under section to be obtained by the agent from the sale of those tickets. If
6041A(a)(1). the commissions for the year total $600 or more, they must
be reported in box 1 of Form 1099-NEC. See Rev. Rul.
Gross proceeds paid to attorneys. Gross proceeds are
92-96, 1992-2 C.B. 281.
not reportable by you in box 1 of Form 1099-NEC. See the
Form 1099-MISC, box 10, instructions, earlier. Payments made on behalf of another person. For
Payments to corporations for legal services. The payments reportable under section 6041, if you make a
exemption from reporting payments made to corporations payment on behalf of another person who is the source of the
does not apply to payments for legal services. Therefore, you funds, you may be responsible for filing Form 1099-NEC.
must report attorneys' fees (in box 1 of Form 1099-NEC) or You are the payor for information reporting purposes if you
gross proceeds (in box 10 of Form 1099-MISC) as described perform management or oversight functions in connection
earlier to corporations that provide legal services. with the payment, or have a significant economic interest in
Taxpayer identification numbers (TINs). To report the payment (such as a lien). For example, a bank that
payments to an attorney on Form 1099-NEC, you must provides financing to a real estate developer for a
obtain the attorney's TIN. You may use Form W-9 to obtain construction project maintains an account from which it
the attorney's TIN. An attorney is required to promptly supply makes payments for services in connection with the project.
its TIN whether it is a corporation or other entity, but the The bank performs management and oversight functions
attorney is not required to certify its TIN. If the attorney fails to over the payments and is responsible for filing information
provide its TIN, the attorney may be subject to a penalty returns for payments of $600 or more paid to contractors. For
under section 6723 and its regulations, and you must backup more information, see Regulations section 1.6041-1(e).
withhold on the reportable payments.
Exceptions
Independent contractor or employee. Generally, you
Some payments do not have to be reported on Form
must report payments to independent contractors on Form
1099-NEC, although they may be taxable to the recipient.
1099-NEC in box 1. See the instructions for box 1.
Payments for which a Form 1099-NEC is not required include
all of the following.

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• Generally, payments to a corporation (including a limited receiving the grant are considered wages and must be
liability company (LLC) that is treated as a C or S reported on Form W-2. Other taxable scholarship or
corporation). However, see Reportable payments to fellowship payments (to a degree or nondegree candidate)
corporations, earlier. do not have to be reported to the IRS on any form, unless
• Payments for merchandise, telegrams, telephone, freight, section 6050S requires reporting of such amounts by an
storage, and similar items. educational institution on Form 1098-T. See section 117(b)–
• Payments of rent to real estate agents or property (d) and Regulations section 1.6041-3(n) for more information.
managers. However, the real estate agent or property
Difficulty-of-care payments. Do not use Form 1099-NEC
manager must use Form 1099-MISC to report the rent paid
to report difficulty-of-care payments that are excludable from
over to the property owner. See Regulations section
the recipient's gross income. Difficulty-of-care payments to
1.6041-3(d); Regulations section 1.6041-1(e)(5), Example 5;
foster care providers are not reportable if paid for fewer than
and the instructions for box 1.
11 children under age 19 and fewer than six individuals age
• Wages, any bonuses, prizes, and awards paid to
19 or older. See section 131(c). Amounts paid for more than
employees (report these on Form W-2).
10 children or more than five other individuals are reportable
• Military differential wage payments made to employees
on Form 1099-NEC.
while they are on active duty in the U.S. Armed Forces or
other uniformed services (report on Form W-2). Certain Medicaid waiver payments may be excludable
• Business travel allowances paid to employees (may be from income as difficulty-of-care payments. For more
reportable on Form W-2). information, see Notice 2014-7, available at IRS.gov/irb/
• Cost of current life insurance protection (report on Form 2014-4_IRB#NOT-2014-7; and Medicaid waiver payments
W-2 or Form 1099-R). frequently asked questions (FAQs), available at IRS.gov/
• Payments to a tax-exempt organization including Individuals/Certain-Medicaid-Payments-May-Be-Excludable-
tax-exempt trusts (IRAs, HSAs, Archer MSAs, Coverdell From-Income.
ESAs, and ABLE (529A) accounts), the United States, a Canceled debt. A canceled debt is not reportable on Form
state, the District of Columbia, a U.S. possession or territory, 1099-NEC. Canceled debts reportable under section 6050P
or a foreign government. must be reported on Form 1099-C. See the Instructions for
• Payments made to or for homeowners from the HFA Forms 1099-A and 1099-C.
Hardest Hit Fund or similar state program (report on Form
1098-MA). Employee business expense reimbursements. Do not
• Compensation for injuries or sickness by the Department use Form 1099-NEC to report employee business expense
of Justice as a public safety officer disability or survivor's reimbursements. Report payments made to employees
benefit, or under a state program that provides benefits for under a nonaccountable plan as wages on Form W-2.
surviving dependents of a public safety officer who has died Generally, payments made to employees under an
as the direct and proximate result of a personal injury accountable plan are not reportable on Form W-2, except in
sustained in the line of duty. certain cases when you pay a per diem or mileage
• Compensation for wrongful incarceration for any criminal allowance. For more information, see the General
offense for which there was a conviction under federal or Instructions for Forms W-2 and W-3, and Pub. 463. For
state law. See section 139F, Certain amounts received by information on reporting employee moving expense
wrongfully incarcerated individuals. reimbursements on Form W-2, see the General Instructions
for Forms W-2 and W-3.
State or local sales taxes. If state or local sales taxes are
imposed on the service provider and you (as the buyer) pay Statements to Recipients
them to the service provider, report them on Form 1099-NEC If you are required to file Form 1099-NEC, you must furnish a
as part of the reportable payment. However, if sales taxes statement to the recipient. For more information about the
are imposed on you (as the buyer) and collected from you by requirement to furnish a statement to each recipient, and
the service provider, do not report the sales taxes on Form truncation, see part M in the current year General Instructions
1099-NEC. for Certain Information Returns.
Form 1099-K. Payments made with a credit card or You can furnish each recipient with a single payee
payment card and certain other types of payments, including statement reporting all Form 1099-NEC payment types. You
third-party network transactions, must be reported on Form are required to furnish the payee statements and file with the
1099-K by the payment settlement entity under section IRS by January 31.
6050W and are not subject to reporting on Form 1099-NEC.
See the separate Instructions for Form 1099-K. Truncating recipient’s TIN on payee statements.
Pursuant to Regulations section 301.6109-4, all filers of this
Fees paid to informers. A payment to an informer as an form may truncate a recipient’s TIN (social security number
award, fee, or reward for information about criminal activity (SSN), individual taxpayer identification number (ITIN),
does not have to be reported if the payment is made by a adoption taxpayer identification number (ATIN), or employer
federal, state, or local government agency, or by a nonprofit identification number (EIN)) on payee statements. Truncation
organization exempt from tax under section 501(c)(3) that is not allowed on any documents the filer files with the IRS. A
makes the payment to further the charitable purpose of payer's TIN may not be truncated on any form. See part J in
lessening the burdens of government. For more information, the current year General Instructions for Certain Information
see Regulations section 1.6041-3(l). Returns.
Scholarships. Do not use Form 1099-NEC to report
scholarship or fellowship grants. Scholarship or fellowship 2nd TIN Not.
grants that are taxable to the recipient because they are paid You may enter an “X” in this box if you were notified by the
for teaching, research, or other services as a condition for IRS twice within 3 calendar years that the payee provided an

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incorrect TIN. If you mark this box, the IRS will not send you • You made payments to the payee of at least $600 during
any further notices about this account. the year.
However, if you received both IRS notices in the same Self-employment tax. Generally, amounts paid to
year, or if you received them in different years but they both individuals that are reportable in box 1 are subject to
related to information returns filed for the same year, do not self-employment tax. If payments to individuals are not
check the box at this time. For purposes of the subject to this tax, report the payments in box 3 of Form
two-notices-in-3-years rule, you are considered to have 1099-MISC. However, report section 530 (of the Revenue
received one notice and you are not required to send a Act of 1978) worker payments in box 1 of Form 1099-NEC.
second “B” notice to the taxpayer on receipt of the second Examples. The following are some examples of payments
notice. See part N in the current year General Instructions for to be reported in box 1.
Certain Information Returns for more information. • Professional service fees, such as fees to attorneys
(including corporations), accountants, architects, contractors,
For information on the TIN Matching System offered
engineers, etc.
TIP by the IRS, see the current year General Instructions
for Certain Information Returns. • Fees paid by one professional to another, such as
fee-splitting or referral fees.
• Payments by attorneys to witnesses or experts in legal
Corrections to Form 1099-NEC adjudication.
If you need to correct a Form 1099-NEC that you have • Payment for services, including payment for parts or
already sent to the IRS: materials used to perform the services if supplying the parts
• For paper forms, see part H in the current year General or materials was incidental to providing the service. For
Instructions for Certain Information Returns; or example, report the total insurance company payments to an
• For electronic corrections, see Pub. 1220. auto repair shop under a repair contract showing an amount
for labor and another amount for parts, if furnishing parts was
If you are filing a correction on a paper form, do not
incidental to repairing the auto.
! check the VOID box on the form. A checked VOID • Commissions paid to nonemployee salespersons that are
CAUTION box alerts IRS scanning equipment to ignore the form
subject to repayment but not repaid during the calendar year.
and proceed to the next one. Your correction will not be
entered into IRS records if you check the VOID box. • 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
Recipient's TIN reimbursement total at least $600. To help you determine
Enter the recipient's TIN using hyphens in the proper format. whether someone is an independent contractor or an
SSNs, ITINs, and ATINs should be in the XXX-XX-XXXX employee, see Pub. 15-A.
format. EINs should be in the XX-XXXXXXX format. You • Payments to nonemployee entertainers for services. Use
should make every effort to ensure that you have the correct Form 1042-S, Foreign Person's U.S. Source Income Subject
type of number reported in the correct format. to Withholding, for payments to nonresident aliens.
• Exchanges of services between individuals in the course
Account Number of their trades or businesses. For example, an attorney
The account number is required if you have multiple represents a painter for nonpayment of business debts in
accounts for a recipient for whom you are filing more than exchange for the painting of the attorney's law offices. The
one Form 1099-NEC. See part L in the current year General amount reportable by each on Form 1099-NEC is the FMV of
Instructions for Certain Information Returns. his or her own services performed. However, if the attorney
represents the painter in a divorce proceeding, this is an
Box 1. Nonemployee Compensation activity that is unrelated to the painter's trade or business.
Enter nonemployee compensation (NEC) of $600 or more. The attorney must report on Form 1099-NEC the value of his
Include fees, commissions, prizes and awards for services or her services. But the painter need not report on Form
performed as a nonemployee, and other forms of 1099-NEC the value of painting the law offices because the
compensation for services performed for your trade or work is in exchange for legal services that are separate from
business by an individual who is not your employee. Include the painter's business.
oil and gas payments for a working interest, whether or not • Taxable fringe benefits for nonemployees. For information
services are performed. Also include expenses incurred for on the valuation of fringe benefits, see Pub. 15-B.
the use of an entertainment facility that you treat as • Gross oil and gas payments for a working interest.
compensation to a nonemployee. Federal executive • Payments to an insurance salesperson who is not your
agencies that make payments to vendors for services, common law or statutory employee. See Pub. 15-A for the
including payments to corporations, must report the definition of employee. However, for termination payments to
payments in this box. See Rev. Rul. 2003-66. former insurance salespeople, see the instructions for box 3
of Form 1099-MISC.
What is NEC? If the following four conditions are met, you • Directors' fees as explained under Directors' fees, earlier.
must generally report a payment as NEC. • Commissions paid to licensed lottery ticket sales agents
• You made the payment to someone who is not your as explained under Commissions paid to lottery ticket sales
employee. agents, earlier.
• You made the payment for services in the course of your • Payments to section 530 (of the Revenue Act of 1978)
trade or business (including government agencies and workers. See the TIP under Independent contractor or
nonprofit organizations). employee, earlier.
• You made the payment to an individual, partnership,
estate, or, in some cases, a corporation. Golden parachute payments. A parachute payment is any
payment that meets all of the following conditions.

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1. The payment is in the nature of compensation. • The cost of group-term life insurance paid on behalf of a
2. The payment is to, or for the benefit of, a disqualified former employee (report on Form W-2).
individual. A disqualified individual is one who at any time
during the 12-month period prior to and ending on the date of Box 2. Payer Made Direct Sales Totaling $5,000
the change in ownership or control of the corporation (the or More
disqualified individual determination period) was an Enter an "X" in the checkbox for sales by you totaling $5,000
employee or independent contractor and was, in regard to or more of consumer products to a person on a buy-sell,
that corporation, a shareholder, an officer, or a highly deposit-commission, or other commission basis for resale
compensated individual. (by the buyer or any other person) anywhere other than in a
3. The payment is contingent on a change in the permanent retail establishment. Do not enter a dollar amount
ownership of a corporation, the effective control of a in this box.
corporation, or the ownership of a substantial portion of the
You may either use box 2 on Form 1099-NEC or box 7 on
assets of a corporation (a change in ownership or control).
Form 1099-MISC to report the direct sales totaling $5,000 or
4. The payment has (together with other payments more. If you use Form 1099-NEC to report these sales, then
described in (1), (2), and (3), above, made to the same you are required to file the Form 1099-NEC with the IRS by
individual) an aggregate present value of at least three times January 31.
the individual's base amount.
Report these sales on only one form.
For more details, see Regulations section 1.280G-1. Also,
see Rev. Proc. 2003-68, which is on page 398 of Internal CAUTION!
Revenue Bulletin 2003-34 at IRS.gov/irb/
2003-34_IRB#RP-2003-68 , concerning the valuation of stock The report you must give to the recipient for these direct
options for purposes of golden parachute payment rules. For sales need not be made on the official form. It may be in the
the treatment of unvested shares of restricted stock, see form of a letter showing this information along with
Rev. Rul. 2005-39, available at IRS.gov/irb/ commissions, prizes, awards, etc.
2005-27_IRB#RR-2005-39.
Independent contractor. Enter in box 1 the total Box 4. Federal Income Tax Withheld
compensation, including any golden parachute payment. For Enter backup withholding. For example, persons who have
excess golden parachute payments, see the instructions for not furnished their TINs to you are subject to withholding on
box 14 of Form 1099-MISC. payments required to be reported in box 1. For more
For employee reporting of these payments, see Pub. 15- information on backup withholding, including the rate, see
A. part N in the current year General Instructions for Certain
Information Returns.
Payments not reported in box 1. Do not report in box 1:
• Expense reimbursements paid to volunteers of nonprofit Boxes 5–7. State Information
organizations; These boxes are provided for your convenience only and
• Deceased employee wages paid in the year after death need not be completed for the IRS. Use the state information
(report in box 3 of Form 1099-MISC) (see Deceased boxes to report payments for up to two states. Keep the
employee's wages, earlier); information for each state separated by the dash line. If you
• Payments more appropriately described as rent (report in withheld state income tax on this payment, you may enter it in
box 1 of Form 1099-MISC), royalties (report in box 2 of Form box 5. In box 6, enter the abbreviated name of the state and
1099-MISC), other income not subject to self-employment the payer's state identification number. In box 7, you may
tax (report in box 3 of Form 1099-MISC), and interest (use enter the amount of the state payment.
Form 1099-INT);
• The cost of current life insurance protection (report on If a state tax department requires that you send them a
Form W-2 or Form 1099-R); paper copy of this form, use Copy 1 to provide information to
• An employee's wages, travel or auto allowance, or the state tax department. Give Copy 2 to the recipient for use
bonuses and prizes (report on Form W-2); and in filing the recipient's state income tax return.

Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2022) -11-

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Index
 
                                            Fish purchases for cash 6
A                                           Fish purchases for resale 7                 P
Agricultural workers, foreign 6             Foreign agricultural workers 6              Parking, value of 8
Armed Forces    3 9,                        Form 1099-K  3 9,                           Payment card transactions    3 6 8 11,  ,  , 
Attorneys' fees and gross proceeds     2,   Former insurance salesperson,               Prizes and awards  5
  7 8 10,  ,                                  termination payments  5 6 10 11,  , ,     Punitive damages  5
                                            Form W-9 2 8, 

B                                                                                       R
Backup withholding    2 6 8 11,  ,  ,       G                                           Rents 1 4, 
Broker transactions   1 6,                  Golden parachute payments      10           Resale of fishes 7
                                            Gross proceeds, attorneys 2 7 8 10,  ,  ,   Royalties 1 5, 
C
Canceled debt   4 9,                        H                                           S
Coin-operated amusements      4             Health care services, payments   1 6 9,  ,  Sale of fish to reseller by fishing boat 
Commissions   8 10,                                                                      operator   1
Construction project, escrow agent     3 8,                                             Scholarships 3 9, 
Consumer products totaling $5,000,          I                                           Section 409A deferrals      7
  indicator for 1                           Independent contractor payments     8 10,   Section 409A income        7
Corporations, payments to   2 8 10,  ,      Indian gaming profits 3                     Section 530 worker 8 10, 
Corrections   4 10,                         Informants, fees 3 9,                       Self-employment tax        10
Crop insurance proceeds    1 7,                                                         State and local sales taxes  9
                                                                                        State Information 7 11, 
                                            L                                           Substitute payments in lieu of dividends 
D                                           Lottery ticket agents, commissions  8 10,    or tax-exempt interest      1 6, 
Damages      5
Deceased employee's wages       2 6 11,  , 
Difficulty-of-care payments 9               M                                           T
Directors' fees 8 10,                       Medical payments  9                         Taxpayer identification number    2 8, 
Direct sales of consumer products for       Medical research payments    5              Termination payments, insurance 
  resale 1                                  Medical services payments 6                  salespeople   5 10, 
Direct Sales totaling $5,000  11            Military differential payments 3 9,         Trade or business  2 8, 
                                            Miscellaneous information 1                 Transit passes 8
E
Excess golden parachute payments       7    N                                           W
Exchange of services  10                    Nonemployee compensation       7            Withholding:
                                            Nonemployee compensation (NEC)      10       Backup    2 6 8 11,  ,  , 
                                            Nonqualified deferred compensation        7  Indian gaming    3 6 11,  , 
F
FATCA filing requirements   4 6 7 10,  ,  , 
Fees 1 3 7 10,  ,  –                        O
Fishing boat proceeds 6                     Other income 5

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