You need to fill out 1099-MISC IRS form if you’re a business or a non-profit based in the US and you have made the following types of payments during the tax year:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
- At least $600 in the following:
Prizes and awards
Other income payments
Cash from a notional principal contract to an individual, a partnership or an estate
Any fishing boat proceeds
Medical and health care payments
Crop insurance proceeds
Payments to an attorney
Fish purchased for resale
Section 409A deferrals
Non-qualified deferred compensation
Also file Form 1099-MISC for each person you withheld federal income tax from under the backup withholding rules (regardless of the payment amount).
Businesses in US no longer use 1099-MISC to report non-employee compensation. As of 2020, these payments are reported under the form 1099-NEC.
That means if you’re a business owner based in the US and have made payments of over $600 to independent contractors or freelancers (non-corporate entities), you'll report this on a Form 1099-NEC slip, not a 1099-MISC.
And as always, don’t use a 1099 for W-2 employees.
Also notice, that form 1099-NEC is not a replacement for 1099-MISC. Form 1099-NEC only replaces the use of Form 1099-MISC for reporting independent contractor payments. You may need to file both Forms 1099-MISC and 1099-NEC.
Follow these 6 simple steps to fill out Form 1099-MISC on Mac:
- Download the IRS Form 1099-MISC from here.
- Install PDF Expert on your Mac and open page 2 of the downloaded form.
- Enter your own details in the Payer’s info and the Recipient’s info from their Form W-9 on the left side of the form.
- Type in the details of relevant payments made in fields ‘1’ to ‘18’ on the right and bottom of the form.
- Fill out the rest of the fields carefully.
- Sign the form and save it.