MENU
EDU Articles

Learn about investing, trading, retirement, banking, personal finance and more.

Ad is loading...
Help CenterFree ProductsPremium Products
IntroductionMarket AbbreviationsStock Market StatisticsThinking about Your Financial FutureSearch for AdvisorsFinancial CalculatorsFinancial MediaFederal Agencies and Programs
Investment PortfoliosModern Portfolio TheoriesInvestment StrategyPractical Portfolio Management InfoDiversificationRatingsActivities AbroadTrading Markets
Investment Terminology and InstrumentsBasicsInvestment TerminologyTradingBondsMutual FundsExchange Traded Funds (ETF)StocksAnnuities
Technical Analysis and TradingAnalysis BasicsTechnical IndicatorsTrading ModelsPatternsTrading OptionsTrading ForexTrading CommoditiesSpeculative Investments
Cryptocurrencies and BlockchainBlockchainBitcoinEthereumLitecoinRippleTaxes and Regulation
RetirementSocial Security BenefitsLong-Term Care InsuranceGeneral Retirement InfoHealth InsuranceMedicare and MedicaidLife InsuranceWills and Trusts
Retirement Accounts401(k) and 403(b) PlansIndividual Retirement Accounts (IRA)SEP and SIMPLE IRAsKeogh PlansMoney Purchase/Profit Sharing PlansSelf-Employed 401(k)s and 457sPension Plan RulesCash-Balance PlansThrift Savings Plans and 529 Plans and ESA
Personal FinancePersonal BankingPersonal DebtHome RelatedTax FormsSmall BusinessIncomeInvestmentsIRS Rules and PublicationsPersonal LifeMortgage
Corporate BasicsBasicsCorporate StructureCorporate FundamentalsCorporate DebtRisksEconomicsCorporate AccountingDividendsEarnings

What is Form 1099-MISC?

IRS Link to Form — Found Here

The 1099-MISC form is filed by the payer, which is the business (whether for-profit or not-for-profit) making the distributions or payments to an individual who is operating in a non-employee capacity as independent contractor.

This form is also used to report rental income, royalties, and Indian gaming profits.

Independent contractors are often used by businesses for various kinds of labor. These arrangements might be temporary or long-standing, but the business and worker have agreed that the contractor is not an employee, and does not have employee benefits.

The 1099-MISC form is used by the business to report the earnings of these contractors to both the IRS and the contractor. The employee and the IRS will receive the form by January 31 (as of 2016 and the PATH rules). The independent contractor will be responsible for paying taxes on the 1099 income, since the employer cannot be responsible for withholding in this arrangement.

The contractors are sometimes known as “1099 employees” and this part of the workforce is part of what’s sometimes called the “1099 economy.” Otherwise employees might be known as “W-2 Employees,” who have their taxes withheld and by their employer.

Ad is loading...