IRS Form 1099-MISC “Miscellaneous Income” Explained

IRS Form 1099-MISC, Miscellaneous Information, reports certain payments a business makes in the course of its trade or business that aren’t wages and aren’t payments for services by a non-employee. Since 2020, payments to independent contractors go on Form 1099-NEC, not on Form 1099-MISC.

What Goes on Form 1099-MISC

For payments made in 2026, the general threshold rose from $600 to $2,000 under 2025 legislation, and it’ll be indexed for inflation starting in 2027, according to Avalara.

• Box 1, Rents: $2,000 or more, such as office or equipment rent paid to an individual landlord or LLC. Rent paid to a real estate agent or property manager is usually reported by them instead.
• Box 2, Royalties: $10 or more
• Box 3, Other income: $2,000 or more, such as prizes, awards and certain punitive damages
• Box 4, Federal income tax withheld, such as backup withholding
• Box 5, Fishing boat proceeds: any amount paid to crew members, which is relevant for Alaska fishing operations
• Box 6, Medical and health care payments: $2,000 or more
• Box 7: a checkbox for direct sales of $5,000 or more of consumer products for resale
• Box 8, Substitute payments in lieu of dividends or interest: $10 or more
• Box 9, Crop insurance proceeds
• Box 10, Gross proceeds paid to an attorney: $600 or more, such as a legal settlement paid through an attorney
• Boxes 12 and 15: nonqualified deferred compensation

Deadlines

Furnish Form 1099-MISC to recipients by January 31, or February 15 if amounts are reported in Box 8 or 10. File with the IRS by February 28 on paper or March 31 electronically. Businesses filing 10 or more information returns in total generally must e-file.

Exceptions

• Payments to most corporations, except medical and attorney payments
• Payments made by credit card or through payment apps, which are reported on Form 1099-K
• Personal (non-business) payments

If You Receive a 1099-MISC

Where you report it depends on the box. Rents and royalties usually go on Schedule E, prizes and other income on Schedule 1, and fishing boat proceeds on Schedule C (subject to self-employment tax). You must report the income even if you don’t receive a form.

Get Help From Diehl CPA

Tax rules change often, and the right answer depends on your full financial picture. Diehl CPA, led by Mark Diehl, CPA, CFE, prepares returns and builds tax plans for investors, retirees and closely held businesses. Learn about our tax return preparation and investment tax planning services, or contact us to talk through your situation.

This article is general information, not tax or legal advice for your specific situation. Updated October 2026.