1099’s Due Soon!

December 20, 2023

If you pay contractors, “1099 Employees”, or some others (full list below) in the course of your trade or business you are required to send them a 1099-MISC. This is not for personal payments, but for businesses only. You are generally required to file 1099’s and send to recipients by February 15th.

There are different types of 1099 forms, known as information returns, but the most commonly used is not called the 1099-NEC or Nonemployee Compensation. The other would be the 1099-MISC. Who do you send these to and which one? See below:

Specific Instructions for Form 1099-MISC (taken from https://www.irs.gov/instructions/i1099mec)

File Form 1099-MISC, Miscellaneous Information, for each person in the course of your business to whom you have paid the following 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 (box1);
  2. Prizes and awards (box 3);
  3. Other income payments (box 3);
  4. Generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3);
  5. Any fishing boat proceeds (box 5);
  6. Medical and health care payments (box 6);
  7. Crop insurance proceeds (box 9);
  8. Gross proceeds paid to an attorney (box 10) (see Payments to attorneys, later);
  9. Section 409A deferrals (box 12); or
  10. Nonqualified deferred compensation (box 15).


Specific Instructions for Form 1099-NEC (taken from https://www.irs.gov/instructions/i1099mec)

File Form 1099-NEC, Nonemployee Compensation, for each person in the course of your business to whom you have paid the following during the year.

  • At least $600 in:
  1. Services performed by someone who is not your employee (including parts and materials) (box 1); or
  2. Payments to an attorney (box 1).

For a full link to the IRS instructions see: https://www.irs.gov/instructions/i1099mec

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