Frequently Asked Questions

An information return is a tax document businesses are required to file to report certain business transactions to the Internal Revenue Service (IRS). The requirement to file Information Returns is mandated by the Internal Revenue Service and associated regulations.

Any person, including a corporation, partnership, individual, estate, and trust, who makes reportable transactions during the calendar year, must file information returns to report those transactions to the IRS. Persons required to file Information Returns to the IRS must also furnish statements to the recipients of the income. Filers who have 250 or more recipient statements must file these returns electronically.

Form 1099-MISC is used to report Miscellaneous Income and also, use to report direct sales of $5,000 or more of consumer goods for resale.

Rent or royalty payments; prizes and awards that are not for services, such as winnings on TV or radio shows.

The due date to file to IRS is February 28th, if you file on paper, or April 2, 2018, if you e-file.

If the following four conditions are met, you must generally report a payment as nonemployee compensation.

  • 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; and
  • You made payments to the payee of at least $600 during the year.

In general, rent payments of $600 or more and/or gross royalty payments of $10 or more must be reported. See IRS instructions for Form 1099-MISC for additional information.

All amounts paid to crew members by owners or operators of fishing boats including payments of proceeds from sale of catch has to be reported.

All amounts have to be reported under Section 409A income from nonqualified deferred compensation plans (NQDCs).

If the paid amount is $600 or more you must report the 1099-MISC Form.

The amount has to be reported if the paid amount is $600 or more.

The amount has to be reported if the paid amount is $600 or more.

Copy B of Form 1099 MISC is due by February 15th if substitute payments are reported in box 8 or gross proceeds paid to an attorney are reported in box 14. If no such payments are reported, January 31, remains the due date for providing Copy B to recipients of 1099 MISC.

Federal Identification Number, also known as an Employer Identification Number (EIN),is used to identify a business entity.

Recipient’s Identification Number is a person’s Taxpayer Identification Number for whom the payment is made.

  • 1099 MISC Copy A is from you, the filer, to the IRS. This copy is e-filed to the IRS by ETAX1099. Tax2efile will send you a confirmation.
  • 1099 MISC Copy 1 is for your state tax department.  When required by the state, send them all in one envelope.
  • 1099 MISC Copy B is from you to the recipient for his/her records. The "Instructions to Recipient" are automatically printed on this copy by ETAX1099
  • 1099 MISC Copy 2 is from you to the recipient, for the recipient's state tax return (when required), or as an extra copy for the recipient.
  • 1099 MISC Copy C is a copy for your records.

Forms

Type of Payment Report on Form
Abandonment 1099-A
Accelerated death benefits 1099-LTC
Acquisition of control 1099-CAP
Advance earned income credit W-2
Advance health insurance payments 1099-H
Agriculture payments 1099-G
Allocated tips W-2
Alternate TAA payments 1099-G
Annuities 1099-R
Archer MSAs:
Contributions 5498-SA
Distributions 1099-SA
Auto reimbursements, employee W-2
Awards, employee W-2
Barter exchange income 1099-B
Bonuses, employee W-2
Broker transactions 1099-B
Cancellation of debt 1099-C
Capital gain distributions 1099-DIV
Car expense, employee W-2
Changes in capital structure 1099-CAP
Charitable gift annuities 1099-R
Commissions, employee W-2
Commodities transactions 1099-B
Compensation, employee W-2
Contributions of motor vehicles, boats, and airplanes 1098-C
Cost of current life insurance protection 1099-R
Type of Payment Report on Form
Coverdell ESA contributions 5498-ESA
Coverdell ESA distributions 1099-Q
Death benefits 1099-R
Accelerated 1099-LTC
Debt cancellation 1099-C
Dependent care payments W-2
Direct rollovers 1099-Q, 1099-R, 5498
Discharge of indebtedness 1099-C
Dividends 1099-C
Donation of motor vehicle 1098-C
Education loan interest 1098-E
Employee business expense reimbursement W-2
Employee compensation W-2
Excess deferrals, excess contributions, distributions of 1099-R
Exercise of incentive stock option under section 422(b) 3921
Fees, employee W-2
Foreclosures 1099-A
Foreign persons' income 1042-S
401(k) contributions W-2
404(k) dividend 1099-DIV
Gambling winnings W-2G
Golden parachute, employee W-2
Grants, taxable 1099-G
Health insurance advance payments 1099-H
Health savings accounts:
Contributions 5498-SA
Distributions 1099-SA
Type of Payment Report on Form
Income attributable to domestic production activities, deduction for
Income tax refunds, state and local 1099-G
Interest income 1099-INT
Tax-exempt 1099-INT
Interest, mortgage 1098
IRA contributions 5498
Life insurance contract distributions 1099-R, 1099-LTC
Liquidation, distributions in 1099-DIV
Loans, distribution from pension plan 1099-R
Long-term care benefits 1099-LTC
HSA, Archer MSA or Medicare Advantage MSAs:
Contributions 5498-SA
Distributions 1099-SA
Mileage, employee W-2
Military retirement 1099-R
Mortgage insurance premiums 1098
Mortgage interest 1098
Moving expense W-2
Nonqualified deferred compensation:
Beneficiary 1099-R
Employee W-2
Original issue discount (OID) 1099-OID
Patronage dividends 1099-PATR
Pensions 1099-R
Points 1098
Prizes, employee W-2
Profit-sharing plan 1099-R
Qualified plan distributions 1099-R
Qualified tuition program payments 1099-Q
Type of Payment Report on Form
Real estate transactions 1099-S
Re-characterized IRA contributions 1099-R, 5498
Refund, state and local tax 1099-G
Retirement 1099-R
Roth conversion IRA contributions 5498
Roth conversion IRA distributions 1099-R
Roth IRA contributions 5498
Roth IRA distributions 1099-R
Timber, pay-as-cut contract 1099-S
Sales:
Real estate 1099-S
Securities 1099-B
Section 1035 exchange 1099-R
SEP contributions W-2, 5498
SEP distributions 1099-R
Severance pays W-2
Sick pay W-2
SIMPLE contributions W-2, 5498
SIMPLE distributions 1099-R
Student loan interest 1098-E
Supplemental unemployment W-2
Tax refunds, state and local 1099-G
Tips W-2
Transfer of stock acquired through an employee stock purchase plan under section 423(c) 3922
Tuition 1098-T
Unemployment benefits 1099-G
Vacation allowance, employee W-2
Wages W-2
   

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