Box-5 Fishing Boat Proceeds-this is about the money proceeds as payable by the owner of the fishing boats to the each working fishing crews as individuals who can be a mate, engineer or cook where earnings are based on providing a portion of the catch itself, proceeds of the catch as a distribution in kind or fair market value of the catch. The fair market value is the buyer paying to the seller and which is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market.
Box-5 also includes payments of up to $100 in cash that are contingent on a minimum catch. There is no minimum reporting threshold for fishing boat proceeds. A fishing boat has normally fewer than 10 crew members and the distribution in kind as fish or money proceeds of fish are given to each crew member at a fair market value. However, if any wages that are reportable through form W-2 need not have to use Box-5.
Box-6 Medical and health care payments – The standard payment of $600 or more to health care providers like doctors, nurses, hospitals, and corporations is fixed as reporting threshold to use this box-6. Payments to pharmacies for prescription drugs or to insurance companies for premiums paid on fully-insured health coverage are not included here, but payments made by insurance companies to medical service providers are included. Where charges include both goods and services, hence have to report the entire payment by using Box-6.Here the goods mean the pharmaceutical products like vaccines for viral fever and the services are through doctors and nurses who use these products to administer the patients.
Medical and health care service providers are rather broadly defined for usage of Box 6. For example, any payee that offers medical and health care services, including drug screening, expert testimony, and lab services, as a primary business function should be reported using Box 6. However when payments made to the tax-exempt hospital and extra-care facility entities are not required to report in box-6.