Report Income Payments on 1099 misc 2018 form
e file 1099 for whenever you make some payments to someone who is not your employee (vendors or contractors) $600 or more during the entire 2018 tax year.For example: Your first payment was in June of $300 would not require a 1099 misc form, but If you pay him again $300 later months. You total amount becomes $600 so you must issue a e-File 1099 form to this vendor and have report this information return to IRS.
Common types of income that require this form include:
- Rents (box 1);
- Services performed by someone who is not your employee (including parts and materials), box 7
- Prizes and awards
- Other income payments (box 3)
- Medical and health care payments (box 6)
- Crop insurance proceeds (box 10)
- Cash payments for fish you purchase from anyone engaged in the trade or business of catching fish (box 7)
- Generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3)
- Payments to an attorney.
- Any fishing boat proceeds (box 5)
In addition, use e-file 1099 MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment (box 9)
You must also submit e-file 1099-MISC form to anyone you paid $10 or more in royalties or broker payments, not including dividends or tax-exempt interest. You must also e-file 1099-MISC Form for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment.
Be sure to report each payment in the proper box because the IRS uses this information to determine whether the recipient has properly reported the payment.