What is Form 1099
Form 1099 covers Miscellaneous Income for each person to whom you have paid during the year the following:
- At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest
- At least $600 in: rents; services performed by someone who is not your employee; prizes and awards; other income payments; medical and health care payments; crop insurance proceeds; cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish; generally, the cash paid from a notional principal contract to an individual, partnership, or estate; payments to an attorney; and any fishing boat proceeds.
This form is also used to report that you have made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment; and for each person whom you have withheld any federal income tax under the backup withholding rules regardless of the amount of payment.
Who Must File Form 1099
A nominee recipient, or one who receive a Form 1099 for amounts that actually belong to another person, must file this form. You must file a Form 1099 for each of the other owners showing the amounts allotted for each, and you must these owners with this form.
When to File Form 1098
Form 1099 is filed by February 29, 2016 and March 31, 2016 if filing electronically.