Selecione o idioma

Instruções para formulários 1099-MISC e 1099-NEC

Instruções para Formulários 1099-MISC e 1099-NEC, Informações Diversas e Compensação Nenhumployee

Rev. janeiro 2024

Formulários Relacionados

Detalhes
Formato de arquivo PDF
Tamanho 269.6 KB
Download
Department of the Treasury  
Internal Revenue Service  
Instructions for Forms  
1099-MISC and 1099-NEC  
(Rev. January 2024)  
Miscellaneous Information and Nonemployee Compensation  
Section references are to the Internal Revenue Code unless  
otherwise noted.  
Online fillable copies. To ease statement furnishing  
requirements, Copies B, 1, and 2 have been made fillable  
online in a PDF format available at IRS.gov/Form1099MISC  
and IRS.gov/Form1099NEC. You can complete these copies  
online for furnishing statements to recipients and for retaining  
in your own files.  
Filing dates. Section 6071(c) requires you to file Form  
1099-NEC on or before January 31, using either paper or  
electronic filing procedures. File Form 1099-MISC by  
February 28, if you file on paper, or March 31, if you file  
electronically.  
Future Developments  
For the latest information about developments related to  
Forms 1099-MISC and 1099-NEC and their instructions,  
such as legislation enacted after they were published, go to  
What’s New  
E-filing returns. The Taxpayer First Act of 2019 authorized  
the Department of the Treasury and the IRS to issue  
regulations that reduce the 250-return e-file threshold. TD  
9972, published February 23, 2023, lowered the e-file  
threshold to 10 (calculated by aggregating all information  
returns), effective for information returns required to be filed  
on or after January 1, 2024. Go to IRS.gov/InfoReturn for  
e-file options.  
Specific Instructions for Form  
1099-MISC  
File Form 1099-MISC, Miscellaneous Information, for each  
person in the course of your business to whom you have paid  
the following during the year.  
At least $10 in royalties (see the instructions for box 2) or  
Reminders  
General instructions. In addition to these specific  
instructions, you should also use the current year General  
Instructions for Certain Information Returns. Those general  
instructions include information about the following topics.  
broker payments in lieu of dividends or tax-exempt interest  
(see the instructions for box 8).  
At least $600 in:  
1. Rents (box 1);  
2. Prizes and awards (box 3);  
3. Other income payments (box 3);  
4. Generally, the cash paid from a notional principal  
Who must file.  
When and where to file.  
Electronic reporting.  
Corrected and void returns.  
Statements to recipients.  
Taxpayer identification numbers (TINs).  
Backup withholding.  
contract to an individual, partnership, or estate (box 3);  
5. Any fishing boat proceeds (box 5);  
6. Medical and health care payments (box 6);  
7. Crop insurance proceeds (box 9);  
Penalties.  
The definitions of terms applicable for the purposes of  
8. Gross proceeds paid to an attorney (box 10) (see  
chapter 4 of the Internal Revenue Code that are referenced in  
these instructions.  
9. Section 409A deferrals (box 12); or  
10. Nonqualified deferred compensation (box 15).  
Other general topics.  
You can get the general instructions from General  
You may either file Form 1099-MISC (box 7) or Form  
1099-NEC (box 2) to report sales totaling $5,000 or more of  
consumer products to a person on a buy-sell, a  
deposit-commission, or other commission basis for resale.  
Continuous-use form and instructions. Form 1099-MISC,  
Form 1099-NEC, and these instructions are continuous use.  
Both the forms and instructions will be updated as needed.  
For the most recent version, go to IRS.gov/Form1099MISC or  
If you use Form 1099-NEC to report sales totaling  
$5,000 or more, then you are required to file Form  
!
CAUTION  
1099-NEC with the IRS by January 31.  
You must also file Form 1099-MISC 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.  
Form 1099-NEC, box 1. Box 1 will not be used for reporting  
under section 6050R, regarding cash payments for the  
purchase of fish for resale purposes.  
Form 1099-NEC, box 2. Payers may use either box 2 on  
Form 1099-NEC or box 7 on Form 1099-MISC to report any  
sales totaling $5,000 or more of consumer products for  
resale, on a buy-sell, a deposit-commission, or any other  
basis. For further information, see the instructions, later, for  
box 2 (Form 1099-NEC) or box 7 (Form 1099-MISC).  
Be sure to report each payment in the proper box  
because the IRS uses this information to determine  
!
CAUTION  
whether the recipient has properly reported the  
payment.  
Sep 15, 2023  
Cat. No. 74614G  
 
Payments to corporations for legal services. The  
exemption from reporting payments made to corporations  
does not apply to payments for legal services. Therefore, you  
must report attorneys' fees (in box 1 of Form 1099-NEC) or  
gross proceeds (in box 10 of Form 1099-MISC), as described  
earlier, to corporations that provide legal services.  
Taxpayer identification numbers (TINs). To report  
payments to an attorney on Form 1099-MISC, you must  
obtain the attorney's TIN. You may use Form W-9 to obtain  
the attorney's TIN. An attorney is required to promptly supply  
its TIN whether it is a corporation or other entity, but the  
attorney is not required to certify its TIN. If the attorney fails to  
provide its TIN, the attorney may be subject to a penalty  
under section 6723 and its regulations, and you must backup  
withhold on the reportable payments.  
Deceased employee's wages. When an employee dies  
during the year, you must report the accrued wages, vacation  
pay, and other compensation paid after the date of death. If  
you made the payment in the same year the employee died,  
you must withhold social security and Medicare taxes on the  
payment and report them only as social security and  
Medicare wages on the employee's Form W-2 to ensure that  
proper social security and Medicare credit is received. On the  
Form W-2, show the payment as social security wages  
(box 3) and Medicare wages and tips (box 5) and the social  
security and Medicare taxes withheld in boxes 4 and 6; do  
not show the payment in box 1 of Form W-2.  
Trade or business reporting only. Report on Form  
1099-MISC only when payments are made in the course of  
your trade or business. Personal payments are not  
reportable. You are engaged in a trade or business if you  
operate for gain or profit. However, nonprofit organizations  
are considered to be engaged in a trade or business and are  
subject to these reporting requirements. Other organizations  
subject to these reporting requirements include trusts of  
qualified pension or profit-sharing plans of employers, certain  
organizations exempt from tax under section 501(c) or (d),  
farmers' cooperatives that are exempt from tax under section  
521, and widely held fixed investment trusts. Payments by  
federal, state, or local government agencies are also  
reportable.  
Reportable payments to corporations. The following  
payments made to corporations must generally be reported  
on Form 1099-MISC.  
Cash payments for the purchase of fish for resale reported  
in box 11.  
Medical and health care payments reported in box 6.  
Substitute payments in lieu of dividends or tax-exempt  
interest reported in box 8.  
Gross proceeds paid to an attorney reported in box 10.  
Payments to attorneys. The term “attorney” includes a law  
firm or other provider of legal services. Attorneys' fees of  
$600 or more paid in the course of your trade or business are  
reportable in box 1 of Form 1099-NEC, under section  
6041A(a)(1).  
Gross proceeds paid to attorneys. Under section  
6045(f), report in box 10 payments that:  
If you made the payment after the year of death, do not  
report it on Form W-2 and do not withhold social security and  
Medicare taxes.  
Whether the payment is made in the year of death or after  
the year of death, you must also report the payment to the  
estate or beneficiary on Form 1099-MISC. Report the  
payment in box 3 (rather than as nonemployee  
Are made to an attorney in the course of your trade or  
business in connection with legal services, but not for the  
attorney’s services, for example, as in a settlement  
agreement;  
compensation). See the Example that follows. Enter the  
name and TIN of the payment recipient on Form 1099-MISC.  
For example, if the recipient is an individual beneficiary, enter  
the name and social security number of the individual; if the  
recipient is the estate, enter the name and employer  
identification number of the estate. The general backup  
withholding rules apply to this payment.  
Death benefits from nonqualified deferred compensation  
plans or section 457 plans paid to the estate or beneficiary of  
a deceased employee are reportable on Form 1099-MISC.  
Do not report these death benefits on Form 1099-R.  
However, if the benefits are from a qualified plan, report them  
on Form 1099-R. See the Instructions for Forms 1099-R and  
5498.  
Example. Before Bailey's death on June 15, 2022, Bailey  
was employed and Bailey received $10,000 in wages on  
which federal income tax of $1,500 was withheld. When  
Bailey died, Bailey’s employer owed Bailey $2,000 in wages  
and $1,000 in accrued vacation pay. The total of $3,000 (less  
the social security and Medicare taxes withheld) was paid to  
Bailey's estate on July 20, 2022. Because Bailey’s employer  
made the payment during the year of death, Bailey’s  
employer must withhold social security and Medicare taxes  
on the $3,000 payment and must complete Form W-2 as  
follows.  
Total $600 or more; and  
Are not reportable by you in box 1 of Form 1099-NEC.  
Generally, you are not required to report the claimant's  
attorney's fees. For example, an insurance company pays a  
claimant's attorney $100,000 to settle a claim. The insurance  
company reports the payment as gross proceeds of  
$100,000 in box 10. However, the insurance company does  
not have a reporting requirement for the claimant's attorney's  
fees subsequently paid from these funds.  
These rules apply whether or not:  
The legal services are provided to the payer;  
The attorney is the exclusive payee (for example, the  
attorney's and claimant's names are on one check); or  
Other information returns are required for some or all of a  
payment under another section of the Code, such as section  
6041.  
For example, a person who, in the course of a trade or  
business, pays $600 of taxable damages to a claimant by  
paying that amount to a claimant's attorney is required to:  
Furnish Form 1099-MISC to the claimant, reporting  
damages pursuant to section 6041, generally in box 3; and  
Furnish Form 1099-MISC to the claimant’s attorney,  
reporting gross proceeds paid pursuant to section 6045(f) in  
box 10.  
For more examples and exceptions relating to payments to  
attorneys, see Regulations section 1.6045-5.  
However, these rules do not apply to wages paid to  
attorneys that are reportable on Form W-2, Wage and Tax  
Statement, or to profits distributed by a partnership to its  
partners that are reportable on Schedule K-1 (Form 1065).  
Box 1—10000.00 (does not include the $3,000 accrued  
wages and vacation pay).  
Box 2—1500.00.  
Box 3—13000.00 (includes the $3,000 accrued wages and  
vacation pay).  
Box 4—806.00 (social security tax withheld).  
-2-  
Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2024)  
           
Box 5—13000.00 (includes the $3,000 accrued wages and  
Wages paid to employees (report on Form W-2).  
vacation pay).  
Military differential wage payments made to employees  
Box 6—188.50 (Medicare tax withheld).  
while they are on active duty in the U.S. Armed Forces or  
other uniformed services (report on Form W-2).  
Bailey’s employer must also complete Form 1099-MISC as  
Business travel allowances paid to employees (may be  
follows.  
reportable on Form W-2).  
Cost of current life insurance protection (report on Form  
Boxes for recipient's name, address, and TIN—The  
estate’s or beneficiary's name, address, and TIN.  
W-2 or Form 1099-R).  
Box 3—3000.00 (Even though amounts were withheld for  
Payments to a tax-exempt organization including  
social security and Medicare taxes, the gross amount is  
reported here.)  
tax-exempt trusts (IRAs, HSAs, Archer MSAs, Coverdell  
ESAs, and ABLE (529A) accounts), the United States, a  
state, the District of Columbia, a U.S. territory, or a foreign  
government.  
If Bailey’s employer made the payment after the year of  
death, the $3,000 would not be subject to social security and  
Medicare taxes and would not be shown on Form W-2.  
However, Bailey’employer would still file Form 1099-MISC.  
Payments made on behalf of another person. For  
payments reportable under section 6041, if you make a  
payment on behalf of another person who is the source of the  
funds, you may be responsible for filing Form 1099-MISC.  
You are the payor for information reporting purposes if you  
perform management or oversight functions in connection  
with the payment, or have a significant economic interest in  
the payment (such as a lien). For example, a bank that  
provides financing to a real estate developer for a  
Payments made to or for homeowners from the HFA  
Hardest Hit Fund or similar state program (report on Form  
1098-MA).  
Compensation for injuries or sickness by the Department  
of Justice as a public safety officer (PSO) disability or  
survivor's benefit, or under a state program that provides  
benefits for surviving dependents of a PSO who has died as  
the direct and proximate result of a personal injury sustained  
in the line of duty.  
Compensation for wrongful incarceration for any criminal  
offense for which there was a conviction under federal or  
state law. See section 139F, Certain amounts received by  
wrongfully incarcerated individuals.  
construction project maintains an account from which it  
makes payments for services in connection with the project.  
The bank performs management and oversight functions  
over the payments and is responsible for filing information  
returns for payments of $600 or more paid to contractors. For  
more information, see Regulations section 1.6041-1(e).  
Indian gaming profits, payments to tribal members. If  
you make payments to members of Indian tribes from the net  
revenues of class II or class III gaming activities conducted or  
licensed by the tribes, you must withhold federal income tax  
on such payments. File Form 1099-MISC to report the  
payments and withholding to tribal members. Report the  
payments in box 3 and the federal income tax withheld in  
box 4. Pub. 15-A contains the necessary Tables for  
Withholding on Distributions of Indian Gaming Profits to Tribal  
Members.  
Form 1099-K. Payments made with a credit card or payment  
card and certain other types of payments, including  
third-party network transactions, must be reported on Form  
1099-K by the payment settlement entity under section  
6050W and are not subject to reporting on Form 1099-MISC.  
See the separate Instructions for Form 1099-K.  
Fees paid to informers. A payment to an informer as an  
award, fee, or reward for information about criminal activity  
does not have to be reported if the payment is made by a  
federal, state, or local government agency, or by a nonprofit  
organization exempt from tax under section 501(c)(3) that  
makes the payment to further the charitable purpose of  
lessening the burdens of government. For more information,  
see Regulations section 1.6041-3(l).  
State or local sales taxes. If state or local sales taxes are  
imposed on the service provider and you (as the buyer) pay  
them to the service provider, report them on Form  
1099-MISC as part of the reportable payment. However, if  
sales taxes are imposed on you (as the buyer) and collected  
from you by the service provider, do not report the sales  
taxes on Form 1099-MISC.  
Scholarships. Do not use Form 1099-MISC to report  
scholarship or fellowship grants. Scholarship or fellowship  
grants that are taxable to the recipient because they are paid  
for teaching, research, or other services as a condition for  
receiving the grant are considered wages and must be  
reported on Form W-2. Other taxable scholarship or  
fellowship payments (to a degree or nondegree candidate)  
do not have to be reported to the IRS on any form, unless  
section 6050S requires reporting of such amounts by an  
educational institution on Form 1098-T. See section 117(b)–  
(d) and Regulations section 1.6041-3(n) for more information.  
Exceptions  
Some payments do not have to be reported on Form  
1099-MISC, although they may be taxable to the recipient.  
Payments for which a Form 1099-MISC is not required  
include all of the following.  
Canceled debt. A canceled debt is not reportable on Form  
1099-MISC. Canceled debts reportable under section 6050P  
must be reported on Form 1099-C. See the Instructions for  
Forms 1099-A and 1099-C.  
Generally, payments to a corporation (including a limited  
liability company (LLC) that is treated as a C or S  
corporation). However, see Reportable payments to  
corporations, earlier.  
Employee business expense reimbursements. Do not  
use Form 1099-MISC to report employee business expense  
reimbursements. Report payments made to employees under  
a nonaccountable plan as wages on Form W-2. Generally,  
payments made to employees under an accountable plan are  
not reportable on Form W-2, except in certain cases when  
you pay a per diem or mileage allowance. For more  
Payments for merchandise, telegrams, telephone, freight,  
storage, and similar items.  
Payments of rent to real estate agents or property  
managers. However, the real estate agent or property  
manager must use Form 1099-MISC to report the rent paid  
over to the property owner. See Regulations section  
1.6041-3(d); Regulations section 1.6041-1(e)(5), Example 5;  
and the instructions for box 1.  
W-3, and Pub. 463. For information on reporting employee  
-3-  
Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2024)  
               
moving expense reimbursements on Form W-2, see the  
Recipient's TIN  
Enter the recipient's TIN using hyphens in the proper format.  
SSNs, ITINs, and ATINs should be in the XXX-XX-XXXX  
format. EINs should be in the XX-XXXXXXX format.  
Widely held fixed investment trusts (WHFITs). Trustees  
and middlemen of WHFITs must report items of gross income  
attributable to a trust income holder (TIH) on the appropriate  
Form 1099. A tax information statement that includes the  
information provided to the IRS on Forms 1099, as well as  
additional information identified in Regulations section  
1.671-5(e), must be furnished to TIHs. For details, see the  
current year General Instructions for Certain Information  
Returns.  
You should make every effort to ensure that you have  
the correct type of number reported in the correct  
!
CAUTION  
format.  
Account Number  
The account number is required if you have multiple accounts  
for a recipient for whom you are filing more than one Form  
1099-MISC. The account number is also required if you  
check the “FATCA filing requirement” box. See Box 13, later.  
Additionally, the IRS encourages you to designate an account  
number for all Forms 1099-MISC that you file. See part L in  
the current year General Instructions for Certain Information  
Returns.  
Statements to Recipients  
If you are required to file Form 1099-MISC, you must furnish a  
statement to the recipient. For more information about the  
requirement to furnish a statement to each recipient, and  
truncation, see part M in the current year General Instructions  
for Certain Information Returns.  
You can furnish each recipient with a single payee  
statement reporting all Form 1099-MISC payment types. You  
are required to furnish the payee statements by January 31  
and file with the IRS by February 28 (March 31, if filing  
electronically).  
Truncating recipient’s TIN on payee statements.  
Pursuant to Regulations section 301.6109-4, all filers of this  
form may truncate a recipient’s TIN (social security number  
(SSN), individual taxpayer identification number (ITIN),  
adoption taxpayer identification number (ATIN), or employer  
identification number (EIN)) on payee statements. Truncation  
is not allowed on any documents the filer files with the IRS. A  
payer's TIN may not be truncated on any form. See part J in  
the current year General Instructions for Certain Information  
Returns.  
Box 1. Rents  
Enter amounts of $600 or more for all types of rents, such as  
any of the following.  
Real estate rentals paid for office space. However, you do  
not have to report these payments on Form 1099-MISC if you  
paid them to a real estate agent or property manager. But the  
real estate agent or property manager must use Form  
1099-MISC to report the rent paid over to the property owner.  
See Regulations section 1.6041-3(d) and Regulations  
section 1.6041-1(e)(5), Example 5.  
Machine rentals (for example, renting a bulldozer to level  
your parking lot). If the machine rental is part of a contract  
that includes both the use of the machine and the operator,  
prorate the rental between the rent of the machine (report  
that in box 1) and the operator's charge (report that on Form  
1099-NEC in box 1).  
2nd TIN Not.  
Pasture rentals (for example, farmers paying for the use of  
You may enter an “X” in this box if you were notified by the  
IRS twice within 3 calendar years that the payee provided an  
incorrect TIN. If you mark this box, the IRS will not send you  
any further notices about this account.  
grazing land).  
Public housing agencies must report in box 1 rental  
assistance payments made to owners of housing projects.  
See Rev. Rul. 88-53, 1988-1 C.B. 384.  
However, if you received both IRS notices in the same  
year, or if you received them in different years but they both  
related to information returns filed for the same year, do not  
check the box at this time. For purposes of the  
Coin-operated amusements. If an arrangement between  
an owner of coin-operated amusements and an owner of a  
business establishment where the amusements are placed is  
a lease of the amusements or the amusement space, the  
owner of the amusements or the owner of the space,  
whoever makes the payments, must report the lease  
payments in box 1 of Form 1099-MISC if the payments total  
at least $600. However, if the arrangement is a joint venture,  
the joint venture must file a Form 1065, U.S. Return of  
Partnership Income, and provide each partner with the  
information necessary to report the partner's share of the  
taxable income. Coin-operated amusements include video  
games, pinball machines, jukeboxes, pool tables, slot  
machines, and other machines and gaming devices operated  
by coins or tokens inserted into the machines by individual  
users. For more information, see Rev. Rul. 92-49, 1992-1  
C.B. 433.  
two-notices-in-3-years rule, you are considered to have  
received one notice and you are not required to send a  
second “B” notice to the taxpayer on receipt of the second  
notice. See part N in the current year General Instructions for  
Certain Information Returns for more information.  
For information on the TIN Matching System offered  
by the IRS, see the current year General Instructions  
for Certain Information Returns.  
TIP  
Corrections to Form 1099-MISC  
If you need to correct a Form 1099-MISC that you have  
already sent to the IRS:  
For paper forms, see part H in the current year General  
Instructions for Certain Information Returns; or  
Box 2. Royalties  
For electronic corrections, see Pub. 1220.  
Enter gross royalty payments (or similar amounts) of $10 or  
more. Report royalties from oil, gas, or other mineral  
properties before reduction for severance and other taxes  
that may have been withheld and paid. Do not include  
surface royalties. They should be reported in box 1. Do not  
report oil or gas payments for a working interest in box 2;  
If you are filing a correction on a paper form, do not  
check the VOID box on the form. A checked VOID  
!
CAUTION  
box alerts IRS scanning equipment to ignore the form  
and proceed to the next one. Your correction will not be  
entered into IRS records if you check the VOID box.  
-4-  
Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2024)  
         
report payments for working interests in box 1 of Form  
1099-NEC. Do not report timber royalties made under a  
pay-as-cut contract; report these timber royalties on Form  
1099-S.  
b. The payments are received after termination of the  
salesperson's agreement to perform services for the  
company.  
c. The salesperson did not perform any services for the  
company after termination and before the end of the year.  
Use box 2 to report royalty payments from intangible  
property such as patents, copyrights, trade names, and  
trademarks. Report the gross royalties (before reduction for  
fees, commissions, or expenses) paid by a publisher directly  
to an author or literary agent, unless the agent is a  
d. The salesperson enters into a covenant not to  
compete against the company for at least 1 year after the  
date of termination.  
e. The amount of the payments depends primarily on  
policies sold by the salesperson or credited to the  
salesperson's account during the last year of the service  
agreement or to the extent those policies remain in force for  
some period after termination, or both.  
f. The amount of the payments does not depend at all on  
length of service or overall earnings from the company  
(regardless of whether eligibility for payment depends on  
length of service).  
corporation. The literary agent (whether or not a corporation)  
that receives the royalty payment on behalf of the author  
must report the gross amount of royalty payments to the  
author on Form 1099-MISC whether or not the publisher  
reported the payment to the agent on its Form 1099-MISC.  
Box 3. Other Income  
Enter other income of $600 or more required to be reported  
on Form 1099-MISC that is not reportable in one of the other  
boxes on the form.  
If the termination payments do not meet all these  
requirements, report them in box 1 of Form 1099-NEC.  
Also enter in box 3 prizes and awards that are not for  
services performed. Include the fair market value (FMV) of  
merchandise won on game shows. Also include amounts  
paid to a winner of a sweepstakes not involving a wager. If a  
wager is made, report the winnings on Form W-2G.  
5. Generally, all punitive damages, any damages for  
nonphysical injuries or sickness, and any other taxable  
damages. Report punitive damages even if they relate to  
physical injury or physical sickness. Generally, report all  
compensatory damages for nonphysical injuries or sickness,  
such as employment discrimination or defamation. However,  
do not report damages (other than punitive damages):  
If, not later than 60 days after the winner becomes  
entitled to the prize, the winner can choose the option  
of a lump sum or an annuity payable over at least 10  
TIP  
a. Received on account of personal physical injuries or  
years, the payment of winnings is considered made when  
actually paid. If the winner chooses an annuity, file Form  
1099-MISC each year to report the annuity paid during that  
year.  
physical sickness;  
b. That do not exceed the amount paid for medical care  
for emotional distress;  
c. Received on account of nonphysical injuries (for  
example, emotional distress) under a written binding  
agreement, court decree, or mediation award in effect on or  
issued by September 13, 1995; or  
d. That are for a replacement of capital, such as  
damages paid to a buyer by a contractor who failed to  
complete construction of a building.  
Do not include wages, any bonuses, prizes, and awards  
paid to your employees. Report these on Form W-2. Do not  
include in box 3 prizes and awards for services performed by  
nonemployees, such as an award for the top commission  
salesperson. Report them in box 1 of Form 1099-NEC.  
Prizes and awards received in recognition of past  
accomplishments in religious, charitable, scientific, artistic,  
educational, literary, or civic fields are not reportable if:  
Damages received on account of emotional distress,  
including physical symptoms such as insomnia, headaches,  
and stomach disorders, are not considered received for a  
physical injury or physical sickness and are reportable unless  
described in item 5b or 5c above. However, damages  
received on account of emotional distress due to physical  
injuries or physical sickness are not reportable.  
The winners are chosen without action on their part,  
The winners are not expected to perform future services,  
and  
The payer transfers the prize or award to a charitable  
organization or governmental unit under a designation made  
by the recipient. See Rev. Proc. 87-54, 1987-2 C.B. 669.  
Also report liquidated damages received under the Age  
Discrimination in Employment Act of 1967.  
Other items required to be reported in box 3 include the  
following.  
Taxable back pay damages may be wages and  
reportable on Form W-2. See Pub. 957.  
TIP  
1. Payments as explained earlier under Deceased  
2. Payments as explained earlier under Indian gaming  
Foreign agricultural workers. Report in box 3  
compensation of $600 or more paid in a calendar year to an  
H-2A visa agricultural worker who did not give you a valid  
TIN. You must also withhold federal income tax under the  
backup withholding rules. For more information, go to  
IRS.gov and enter “foreign agricultural workers” in the search  
box.  
Account reported under FATCA. If you are an foreign  
financial institution (FFI) reporting pursuant to an election  
described in Regulations section 1.1471-4(d)(5)(i)(A) a U.S.  
account required to be reported under chapter 4 to which  
during the year you made no payments reportable on an  
3. A payment or series of payments made to individuals  
for participating in a medical research study or studies.  
4. Termination payments to former self-employed  
insurance salespeople. These payments are not subject to  
self-employment tax and are reportable in box 3 (rather than  
box 1 of Form 1099-NEC) if all the following apply.  
a. The payments are received from an insurance  
company because of services performed as an insurance  
salesperson for the company.  
-5-  
Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2024)  
             
applicable Form 1099, enter zero in box 3. In addition, if you  
are an FFI described in the preceding sentence and, during  
the year, you made payments to the account required to be  
reported under chapter 4, but those payments are not  
reportable on an applicable Form 1099 (for example,  
because the payment is under the applicable reporting  
threshold), you must report the account on this Form  
1099-MISC and enter zero in box 3.  
Generally, payments made under a flexible spending  
arrangement (as defined in section 106(c)(2)) or a  
health reimbursement arrangement, which is treated  
!
CAUTION  
as employer-provided coverage under an accident or health  
plan for purposes of section 106 are exempt from the  
reporting requirements of section 6041.  
Box 7. Payer Made Direct Sales Totaling $5,000  
or More  
Enter an “X” in the checkbox for sales by you totaling $5,000  
or more of consumer products to a person on a buy-sell,  
deposit-commission, or other commission basis for resale (by  
the buyer or any other person) anywhere other than in a  
permanent retail establishment. Do not enter a dollar amount  
in this box.  
Box 4. Federal Income Tax Withheld  
Enter backup withholding. For example, persons who have  
not furnished their TINs to you are subject to withholding on  
payments required to be reported in boxes 1, 2 (net of  
severance taxes), 3, 5 (only with respect to cash payments to  
crew members for their share of proceeds from the catch), 6,  
8, 9, and 10. For more information on backup withholding,  
including the rate, see part N in the current year General  
Instructions for Certain Information Returns.  
You may either use box 7 on Form 1099-MISC or box 2 on  
Form 1099-NEC to report the direct sales totaling $5,000 or  
more. If you use Form 1099-NEC to report these sales, then  
you are required to file the Form 1099-NEC with the IRS by  
January 31.  
Also enter any income tax withheld from payments to  
members of Indian tribes from the net revenues of class II or  
class III gaming activities conducted or licensed by the tribes.  
Report these sales on only one form.  
Box 5. Fishing Boat Proceeds  
!
CAUTION  
If you are the operator of a fishing boat, enter the individual's  
share of all proceeds from the sale of a catch or the FMV of a  
distribution in kind to each crew member of fishing boats with  
normally fewer than 10 crew members. A fishing boat has  
normally fewer than 10 crew members if the average size of  
the operating crew was fewer than 10 on trips during the  
preceding 4 calendar quarters.  
The report you must give to the recipient for these direct  
sales need not be made on the official form. It may be in the  
form of a letter showing this information along with  
commissions, prizes, awards, etc.  
Box 8. Substitute Payments in Lieu of Dividends  
or Interest  
Enter aggregate payments of at least $10 of substitute  
payments received by a broker for a customer in lieu of  
dividends or tax-exempt interest as a result of a loan of a  
customer's securities. Substitute payment means a payment  
in lieu of:  
In addition, report cash payments of up to $100 per trip  
that are contingent on a minimum catch and are paid solely  
for additional duties (such as mate, engineer, or cook) for  
which additional cash payments are traditional in the industry.  
However, do not report on Form 1099-MISC any wages  
reportable on Form W-2.  
1. A dividend, or  
Box 6. Medical and Health Care Payments  
2. Tax-exempt interest to the extent that interest  
(including original issue discount) has accrued while the  
securities were on a loan.  
Enter payments of $600 or more made in the course of your  
trade or business to each physician or other supplier or  
provider of medical or health care services. Include payments  
made by medical and health care insurers under health,  
accident, and sickness insurance programs. If payment is  
made to a corporation, list the corporation as the recipient  
rather than the individual providing the services. Payments to  
persons providing health care services often include charges  
for injections, drugs, dentures, and similar items. In these  
cases, the entire payment is subject to information reporting.  
You are not required to report payments to pharmacies for  
prescription drugs.  
For this purpose, a customer includes an individual, trust,  
estate, partnership, association, company, or corporation.  
See Notice 2003-67, which is on page 752 of Internal  
Revenue Bulletin 2003-40 at IRS.gov/irb/  
2003-40_IRB#NOT-2003-67. It does not include a tax-exempt  
organization, the United States, any state, the District of  
Columbia, a U.S. territory, or a foreign government. File Form  
1099-MISC with the IRS and furnish a copy to the customer  
for whom you received the substitute payment.  
The exemption from issuing Form 1099-MISC to a  
corporation does not apply to payments for medical or health  
care services provided by corporations, including  
Box 9. Crop Insurance Proceeds  
Enter crop insurance proceeds of $600 or more paid to  
farmers by insurance companies unless the farmer has  
informed the insurance company that expenses have been  
capitalized under section 278, 263A, or 447.  
professional corporations. However, you are not required to  
report payments made to a tax-exempt hospital or extended  
care facility or to a hospital or extended care facility owned  
and operated by the United States (or its territories), a state,  
the District of Columbia, or any of their political subdivisions,  
agencies, or instrumentalities.  
Box 10. Gross Proceeds Paid to an Attorney  
Enter gross proceeds of $600 or more paid to an attorney in  
connection with legal services (regardless of whether the  
services are performed for the payer). See Payments to  
attorneys, earlier.  
-6-  
Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2024)  
               
for purposes of section 409A. For additional information, see  
Regulations sections 1.409A-1 through 1.409A-6; Notice  
2008-113, available at IRS.gov/irb/  
Box 11. Fish Purchased for Resale  
If you are in the trade or business of purchasing fish for  
resale, you must report total cash payments of $600 or more  
paid during the year to any person who is engaged in the  
trade or business of catching fish. You are required to keep  
records showing the date and amount of each cash payment  
made during the year, but you must report only the total  
amount paid for the year on Form 1099-MISC.  
2010-6, available at IRS.gov/irb/2010-03_IRB#NOT-2010-6;  
and Notice 2010-80, available at IRS.gov/irb/  
Boxes 16–18. State Information  
"Fish" means all fish and other forms of aquatic life. "Cash"  
means U.S. and foreign coin and currency and a cashier's  
check, bank draft, traveler's check, or money order. Cash  
does not include a check drawn on your personal or business  
account.  
These boxes may be used by payers who participate in the  
Combined Federal/State Filing Program and/or who are  
required to file paper copies of this form with a state tax  
department. See Pub. 1220 for more information regarding  
the Combined Federal/State Filing Program. They are  
provided for your convenience only and need not be  
Box 12. Section 409A Deferrals  
completed for the IRS. Use the state information boxes to  
report payments for up to two states. Keep the information for  
each state separated by the dash line. If you withheld state  
income tax on this payment, you may enter it in box 16. In  
box 17, enter the abbreviated name of the state and the  
payer's state identification number. The state number is the  
payer's identification number assigned by the individual state.  
In box 18, you may enter the amount of the state payment.  
If a state tax department requires that you send them a  
paper copy of this form, use Copy 1 to provide information to  
the state tax department. Give Copy 2 to the recipient for use  
in filing the recipient's state income tax return.  
You do not have to complete this box. For details, see Notice  
2008-115, available at IRS.gov/irb/  
If you complete this box, enter the total amount deferred  
during the year of at least $600 for the nonemployee under all  
nonqualified plans. The deferrals during the year include  
earnings on the current year and prior year deferrals. For  
additional information, see Regulations sections 1.409A-1  
through 1.409A-6. See the instructions for box 15, later.  
For deferrals and earnings under nonqualified deferred  
compensation (NQDC) plans for employees, see the General  
Specific Instructions for Form  
1099-NEC  
Box 13. FATCA Filing Requirement Checkbox  
Check this box if you are a U.S. payer that is reporting on  
Form(s) 1099 (including reporting payments on this Form  
1099-MISC) as part of satisfying your requirement to report  
with respect to a U.S. account for the purposes of chapter 4  
of the Internal Revenue Code, as described in Regulations  
section 1.1471-4(d)(2)(iii)(A). In addition, check the box if you  
are an FFI reporting payments to a U.S. account pursuant to  
an election described in Regulations section 1.1471-4(d)(5)  
(i)(A). Finally, check the box if you are an FFI making the  
election described in Regulations section 1.1471-4(d)(5)(i)  
(A) and are reporting a U.S. account for chapter 4 purposes  
to which you made no payments during the year that are  
reportable on any applicable Form 1099 (or are reporting a  
U.S. account to which you made payments during the year  
that do not reach the applicable reporting threshold for any  
applicable Form 1099).  
File Form 1099-NEC, Nonemployee Compensation, for each  
person in the course of your business to whom you have paid  
the following during the year.  
At least $600 in:  
1. Services performed by someone who is not your  
employee (including parts and materials) (box 1); or  
2. Payments to an attorney (box 1). (See Payments to  
attorneys, later.)  
File Form 1099-NEC or Form 1099-MISC to report sales  
totaling $5,000 or more of consumer products to a person on  
a buy-sell, a deposit-commission, or other commission basis  
for resale.  
If you use Form 1099-NEC to report sales totaling  
$5,000 or more, then you are required to file Form  
!
CAUTION  
1099-NEC with the IRS by January 31.  
Box 14. Excess Golden Parachute Payments  
Enter any excess golden parachute payments. An excess  
parachute payment is the amount over the base amount (the  
average annual compensation for services includible in the  
individual's gross income over the most recent 5 tax years).  
See Q/A-38 through Q/A-44 of Regulations section 1.280G-1  
for how to compute the excess amount.  
You must also file Form 1099-NEC 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  
!
See Golden parachute payments, later, for more  
CAUTION  
whether the recipient has properly reported the  
information.  
payment.  
Box 15. Nonqualified Deferred Compensation  
Trade or business reporting only. Report on Form  
1099-NEC only when payments are made in the course of  
your trade or business. Personal payments are not  
Enter all amounts deferred (including earnings on amounts  
deferred) that are includible in income under section 409A  
because the NQDC plan fails to satisfy the requirements of  
section 409A. Do not include amounts properly reported on a  
Form 1099-MISC, corrected Form 1099-MISC, Form W-2, or  
Form W-2c for a prior year. Also, do not include amounts that  
are considered to be subject to a substantial risk of forfeiture  
reportable. You are engaged in a trade or business if you  
operate for gain or profit. However, nonprofit organizations  
are considered to be engaged in a trade or business and are  
subject to these reporting requirements. Other organizations  
subject to these reporting requirements include trusts of  
-7-  
Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2024)  
                 
qualified pension or profit-sharing plans of employers, certain  
organizations exempt from tax under section 501(c) or  
501(d), farmers' cooperatives that are exempt from tax under  
section 521, and widely held fixed investment trusts.  
Payments by federal, state, or local government agencies are  
also reportable.  
excludable from the independent contractor's gross income  
and are not reportable on Form 1099-NEC if their value in any  
month is $21 or less. However, if the value of a pass provided  
in a month is greater than $21, the full value is part of the  
gross income and must be reported on Form 1099-NEC. The  
value of parking may be excludable from an independent  
contractor's gross income, and, therefore, not reportable on  
Form 1099-NEC if certain requirements are met. See  
Regulations section 1.132-9(b), Q/A-24.  
Reportable payments to corporations. The following  
payments made to corporations must generally be reported  
on Form 1099-NEC.  
Attorneys' fees reported in box 1.  
Directors' fees. You must report directors' fees and other  
remuneration, including payments made after retirement, on  
Form 1099-NEC in the year paid. Report them in box 1.  
Payments by a federal executive agency for services  
(vendors) reported in box 1.  
Federal executive agencies may also have to file  
Commissions paid to lottery ticket sales agents. A state  
that has control over and responsibility for online and instant  
lottery games must file Form 1099-NEC to report  
Form 8596, Information Return for Federal Contracts,  
and Form 8596-A, Quarterly Transmittal of  
!
CAUTION  
Information Returns for Federal Contracts, if a contracted  
amount for personal services is more than $25,000. See Rev.  
Rul. 2003-66, which is on page 1115 of Internal Revenue  
Bulletin 2003-26 at IRS.gov/pub/irs-irbs/irb03-26.pdf for  
details.  
commissions paid, whether directly or indirectly, to licensed  
sales agents. For example, State X retains control over and  
liability for online and instant lottery games. For online ticket  
sales, State X pays commissions by allowing an agent to  
retain 5% of the ticket proceeds the agent remits to State X.  
For instant ticket sales, State X pays commissions by  
providing tickets to the agent for 5% less than the proceeds  
to be obtained by the agent from the sale of those tickets. If  
the commissions for the year total $600 or more, they must  
be reported in box 1 of Form 1099-NEC. See Rev. Rul. 92-96,  
1992-2 C.B. 281.  
Payments made on behalf of another person. For  
payments reportable under section 6041, if you make a  
payment on behalf of another person who is the source of the  
funds, you may be responsible for filing Form 1099-NEC. You  
are the payor for information reporting purposes if you  
perform management or oversight functions in connection  
with the payment, or have a significant economic interest in  
the payment (such as a lien). For example, a bank that  
provides financing to a real estate developer for a  
Payments to attorneys. The term “attorney” includes a law  
firm or other provider of legal services. Attorneys' fees of  
$600 or more paid in the course of your trade or business are  
reportable in box 1 of Form 1099-NEC, under section  
6041A(a)(1).  
Gross proceeds paid to attorneys. Gross proceeds are  
not reportable by you in box 1 of Form 1099-NEC. See the  
Form 1099-MISC, box 10, instructions, earlier.  
Payments to corporations for legal services. The  
exemption from reporting payments made to corporations  
does not apply to payments for legal services. Therefore, you  
must report attorneys' fees (in box 1 of Form 1099-NEC) or  
gross proceeds (in box 10 of Form 1099-MISC) as described  
earlier to corporations that provide legal services.  
Taxpayer identification numbers (TINs). To report  
payments to an attorney on Form 1099-NEC, you must obtain  
the attorney's TIN. You may use Form W-9 to obtain the  
attorney's TIN. An attorney is required to promptly supply its  
TIN whether it is a corporation or other entity, but the attorney  
is not required to certify its TIN. If the attorney fails to provide  
its TIN, the attorney may be subject to a penalty under  
section 6723 and its regulations, and you must backup  
withhold on the reportable payments.  
construction project maintains an account from which it  
makes payments for services in connection with the project.  
The bank performs management and oversight functions  
over the payments and is responsible for filing information  
returns for payments of $600 or more paid to contractors. For  
more information, see Regulations section 1.6041-1(e).  
Exceptions  
Some payments do not have to be reported on Form  
1099-NEC, although they may be taxable to the recipient.  
Payments for which a Form 1099-NEC is not required include  
all of the following.  
Independent contractor or employee. Generally, you  
must report payments to independent contractors on Form  
1099-NEC in box 1. See the instructions for box 1.  
Generally, payments to a corporation (including a limited  
Section 530 of the Revenue Act of 1978, as extended  
liability company (LLC) that is treated as a C or S  
corporation). However, see Reportable payments to  
corporations, earlier.  
by section 269(c) of P.L. 97-248, deals with the  
employment tax status of independent contractors  
TIP  
and employees. To qualify for relief under section 530,  
employers must file Form 1099-NEC. Additional requirements  
for relief are discussed in Rev. Proc. 85-18, 1985-1 C.B. 518.  
Also see Pub. 15-A for special rules that may apply to  
technical service specialists and test proctors and room  
supervisors.  
Payments for merchandise, telegrams, telephone, freight,  
storage, and similar items.  
Payments of rent to real estate agents or property  
managers. However, the real estate agent or property  
manager must use Form 1099-MISC to report the rent paid  
over to the property owner. See Regulations section  
1.6041-3(d); Regulations section 1.6041-1(e)(5), Example 5;  
and the instructions for box 1.  
Transit passes and parking for independent contrac-  
tors. Although you cannot provide qualified transportation  
fringes to independent contractors, the working condition and  
de minimis fringe rules for transit passes and parking apply to  
independent contractors. Tokens or farecards that enable an  
independent contractor to commute on a public transit  
system (not including privately operated van pools) are  
Wages, any bonuses, prizes, and awards paid to  
employees (report these on Form W-2).  
Military differential wage payments made to employees  
while they are on active duty in the U.S. Armed Forces or  
other uniformed services (report on Form W-2).  
-8-  
Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2024)  
                     
Business travel allowances paid to employees (may be  
2014-4_IRB#NOT-2014-7; and Medicaid waiver payments  
frequently asked questions (FAQs), available at IRS.gov/  
Canceled debt. A canceled debt is not reportable on Form  
1099-NEC. Canceled debts reportable under section 6050P  
must be reported on Form 1099-C. See the Instructions for  
Forms 1099-A and 1099-C.  
reportable on Form W-2).  
Cost of current life insurance protection (report on Form  
W-2 or Form 1099-R).  
Payments to a tax-exempt organization including  
tax-exempt trusts (IRAs, HSAs, Archer MSAs, Coverdell  
ESAs, and ABLE (529A) accounts), the United States, a  
state, the District of Columbia, a U.S. territory, or a foreign  
government.  
Employee business expense reimbursements. Do not  
use Form 1099-NEC to report employee business expense  
reimbursements. Report payments made to employees under  
a nonaccountable plan as wages on Form W-2. Generally,  
payments made to employees under an accountable plan are  
not reportable on Form W-2, except in certain cases when  
you pay a per diem or mileage allowance. For more  
Payments made to or for homeowners from the HFA  
Hardest Hit Fund or similar state program (report on Form  
1098-MA).  
Compensation for injuries or sickness by the Department  
of Justice as a PSO disability or survivor's benefit, or under a  
state program that provides benefits for surviving dependents  
of a PSO who has died as the direct and proximate result of a  
personal injury sustained in the line of duty.  
W-3, and Pub. 463. For information on reporting employee  
moving expense reimbursements on Form W-2, see the  
Compensation for wrongful incarceration for any criminal  
offense for which there was a conviction under federal or  
state law. See section 139F, Certain amounts received by  
wrongfully incarcerated individuals.  
Statements to Recipients  
State or local sales taxes. If state or local sales taxes are  
imposed on the service provider and you (as the buyer) pay  
them to the service provider, report them on Form 1099-NEC  
as part of the reportable payment. However, if sales taxes are  
imposed on you (as the buyer) and collected from you by the  
service provider, do not report the sales taxes on Form  
1099-NEC.  
Form 1099-K. Payments made with a credit card or payment  
card and certain other types of payments, including  
third-party network transactions, must be reported on Form  
1099-K by the payment settlement entity under section  
6050W and are not subject to reporting on Form 1099-NEC.  
See the separate Instructions for Form 1099-K.  
Fees paid to informers. A payment to an informer as an  
award, fee, or reward for information about criminal activity  
does not have to be reported if the payment is made by a  
federal, state, or local government agency, or by a nonprofit  
organization exempt from tax under section 501(c)(3) that  
makes the payment to further the charitable purpose of  
lessening the burdens of government. For more information,  
see Regulations section 1.6041-3(l).  
If you are required to file Form 1099-NEC, you must furnish a  
statement to the recipient. For more information about the  
requirement to furnish a statement to each recipient, and  
truncation, see part M in the current year General Instructions  
for Certain Information Returns.  
You can furnish each recipient with a single payee  
statement reporting all Form 1099-NEC payment types. You  
are required to furnish the payee statements and file with the  
IRS by January 31.  
Truncating recipient’s TIN on payee statements.  
Pursuant to Regulations section 301.6109-4, all filers of this  
form may truncate a recipient’s TIN (social security number  
(SSN), individual taxpayer identification number (ITIN),  
adoption taxpayer identification number (ATIN), or employer  
identification number (EIN)) on payee statements. Truncation  
is not allowed on any documents the filer files with the IRS. A  
payer's TIN may not be truncated on any form. See part J in  
the current year General Instructions for Certain Information  
Returns.  
2nd TIN Not.  
Scholarships. Do not use Form 1099-NEC to report  
scholarship or fellowship grants. Scholarship or fellowship  
grants that are taxable to the recipient because they are paid  
for teaching, research, or other services as a condition for  
receiving the grant are considered wages and must be  
reported on Form W-2. Other taxable scholarship or  
You may enter an “X” in this box if you were notified by the  
IRS twice within 3 calendar years that the payee provided an  
incorrect TIN. If you mark this box, the IRS will not send you  
any further notices about this account.  
However, if you received both IRS notices in the same  
year, or if you received them in different years but they both  
related to information returns filed for the same year, do not  
check the box at this time. For purposes of the  
fellowship payments (to a degree or nondegree candidate)  
do not have to be reported to the IRS on any form, unless  
section 6050S requires reporting of such amounts by an  
educational institution on Form 1098-T. See section 117(b)–  
(d) and Regulations section 1.6041-3(n) for more information.  
Difficulty-of-care payments. Do not use Form 1099-NEC  
to report difficulty-of-care payments that are excludable from  
the recipient's gross income. Difficulty-of-care payments to  
foster care providers are not reportable if paid for fewer than  
11 children under age 19 and fewer than six individuals age  
19 or older. See section 131(c). Amounts paid for more than  
10 children or more than five other individuals are reportable  
on Form 1099-NEC.  
two-notices-in-3-years rule, you are considered to have  
received one notice and you are not required to send a  
second “B” notice to the taxpayer on receipt of the second  
notice. See part N in the current year General Instructions for  
Certain Information Returns for more information.  
For information on the TIN Matching System offered  
by the IRS, see the current year General Instructions  
for Certain Information Returns.  
TIP  
Corrections to Form 1099-NEC  
If you need to correct a Form 1099-NEC that you have  
already sent to the IRS:  
Certain Medicaid waiver payments may be excludable  
from income as difficulty-of-care payments. For more  
information, see Notice 2014-7, available at IRS.gov/irb/  
-9-  
Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2024)  
             
For paper forms, see part H in the current year General  
Payment for services, including payment for parts or  
Instructions for Certain Information Returns; or  
materials used to perform the services if supplying the parts  
or materials was incidental to providing the service. For  
example, report the total insurance company payments to an  
auto repair shop under a repair contract showing an amount  
for labor and another amount for parts, if furnishing parts was  
incidental to repairing the auto.  
For electronic corrections, see Pub. 1220.  
If you are filing a correction on a paper form, do not  
check the VOID box on the form. A checked VOID  
!
CAUTION  
box alerts IRS scanning equipment to ignore the form  
and proceed to the next one. Your correction will not be  
entered into IRS records if you check the VOID box.  
Commissions paid to nonemployee salespersons that are  
subject to repayment but not repaid during the calendar year.  
A fee paid to a nonemployee, including an independent  
Recipient's TIN  
Enter the recipient's TIN using hyphens in the proper format.  
SSNs, ITINs, and ATINs should be in the XXX-XX-XXXX  
format. EINs should be in the XX-XXXXXXX format.  
contractor, or travel reimbursement for which the  
nonemployee did not account to the payer, if the fee and  
reimbursement total at least $600. To help you determine  
whether someone is an independent contractor or an  
employee, see Pub. 15-A.  
You should make every effort to ensure that you have  
Payments to nonemployee entertainers for services. Use  
the correct type of number reported in the correct  
!
Form 1042-S, Foreign Person's U.S. Source Income Subject  
to Withholding, for payments to nonresident aliens.  
CAUTION  
format.  
Exchanges of services between individuals in the course  
Account Number  
of their trades or businesses. For example, an attorney  
represents a painter for nonpayment of business debts in  
exchange for the painting of the attorney's law offices. The  
amount reportable by each on Form 1099-NEC is the FMV of  
their own services performed. However, if the attorney  
represents the painter in a divorce proceeding, this is an  
activity that is unrelated to the painter's trade or business.  
The attorney must report on Form 1099-NEC the value of  
their services. But the painter need not report on Form  
1099-NEC the value of painting the law offices because the  
work is in exchange for legal services that are separate from  
the painter's business.  
The account number is required if you have multiple accounts  
for a recipient for whom you are filing more than one Form  
1099-NEC. See part L in the current year General  
Instructions for Certain Information Returns.  
Box 1. Nonemployee Compensation  
Enter nonemployee compensation (NEC) of $600 or more.  
Include fees, commissions, prizes and awards for services  
performed as a nonemployee, and other forms of  
compensation for services performed for your trade or  
business by an individual who is not your employee. Include  
oil and gas payments for a working interest, whether or not  
services are performed. Also include expenses incurred for  
the use of an entertainment facility that you treat as  
compensation to a nonemployee. Federal executive agencies  
that make payments to vendors for services, including  
payments to corporations, must report the payments in this  
box. See Rev. Rul. 2003-66.  
Taxable fringe benefits for nonemployees. For information  
on the valuation of fringe benefits, see Pub. 15-B.  
Gross oil and gas payments for a working interest.  
Payments to an insurance salesperson who is not your  
common law or statutory employee. See Pub. 15-A for the  
definition of employee. However, for termination payments to  
former insurance salespeople, see the instructions for box 3  
of Form 1099-MISC.  
What is NEC? If the following four conditions are met, you  
Directors' fees as explained under Directors' fees, earlier.  
must generally report a payment as NEC.  
Commissions paid to licensed lottery ticket sales agents  
You made the payment to someone who is not your  
agents, earlier.  
employee.  
You made the payment for services in the course of your  
Payments to section 530 (of the Revenue Act of 1978)  
trade or business (including government agencies and  
nonprofit organizations).  
workers. See the TIP under Independent contractor or  
employee, earlier.  
You made the payment to an individual, partnership,  
Golden parachute payments. A parachute payment is any  
estate, or, in some cases, a corporation.  
payment that meets all of the following conditions.  
You made payments to the payee of at least $600 during  
the year.  
1. The payment is in the nature of compensation.  
2. The payment is to, or for the benefit of, a disqualified  
individual. A disqualified individual is one who at any time  
during the 12-month period prior to and ending on the date of  
the change in ownership or control of the corporation (the  
disqualified individual determination period) was an  
employee or independent contractor and was, in regard to  
that corporation, a shareholder, an officer, or a highly  
compensated individual.  
3. The payment is contingent on a change in the  
ownership of a corporation, the effective control of a  
corporation, or the ownership of a substantial portion of the  
assets of a corporation (a change in ownership or control).  
Self-employment tax. Generally, amounts paid to  
individuals that are reportable in box 1 are subject to  
self-employment tax. If payments to individuals are not  
subject to this tax, report the payments in box 3 of Form  
1099-MISC. However, report section 530 (of the Revenue Act  
of 1978) worker payments in box 1 of Form 1099-NEC.  
Examples. The following are some examples of payments  
to be reported in box 1.  
Professional service fees, such as fees to attorneys  
(including corporations), accountants, architects, contractors,  
engineers, etc.  
Fees paid by one professional to another, such as  
fee-splitting or referral fees.  
Payments by attorneys to witnesses or experts in legal  
4. The payment has (together with other payments  
described in (1), (2), and (3), above, made to the same  
individual) an aggregate present value of at least three times  
the individual's base amount.  
adjudication.  
-10-  
Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2024)  
         
For more details, see Regulations section 1.280G-1. Also,  
see Rev. Proc. 2003-68, which is on page 398 of Internal  
Revenue Bulletin 2003-34 at IRS.gov/irb/  
You may either use box 2 on Form 1099-NEC or box 7 on  
Form 1099-MISC to report the direct sales totaling $5,000 or  
more. If you use Form 1099-NEC to report these sales, then  
you are required to file the Form 1099-NEC with the IRS by  
January 31.  
2003-34_IRB#RP-2003-68, concerning the valuation of stock  
options for purposes of golden parachute payment rules. For  
the treatment of unvested shares of restricted stock, see Rev.  
Rul. 2005-39, available at IRS.gov/irb/  
Report these sales on only one form.  
!
CAUTION  
Independent contractor. Enter in box 1 the total  
compensation, including any golden parachute payment. For  
excess golden parachute payments, see the instructions for  
box 14 of Form 1099-MISC.  
The report you must give to the recipient for these direct  
sales need not be made on the official form. It may be in the  
form of a letter showing this information along with  
commissions, prizes, awards, etc.  
For employee reporting of these payments, see Pub. 15-A.  
Payments not reported in box 1. Do not report in box 1:  
Box 4. Federal Income Tax Withheld  
Expense reimbursements paid to volunteers of nonprofit  
Enter backup withholding. For example, persons who have  
not furnished their TINs to you are subject to withholding on  
payments required to be reported in box 1. For more  
information on backup withholding, including the rate, see  
part N in the current year General Instructions for Certain  
Information Returns.  
organizations;  
Deceased employee wages paid in the year after death  
(report in box 3 of Form 1099-MISC) (see Deceased  
employee's wages, earlier);  
Payments more appropriately described as rent (report in  
box 1 of Form 1099-MISC), royalties (report in box 2 of Form  
1099-MISC), other income not subject to self-employment  
tax (report in box 3 of Form 1099-MISC), and interest (use  
Form 1099-INT);  
Boxes 5–7. State Information  
These boxes are provided for your convenience only and  
need not be completed for the IRS. Use the state information  
boxes to report payments for up to two states. Keep the  
information for each state separated by the dash line. If you  
withheld state income tax on this payment, you may enter it in  
box 5. In box 6, enter the abbreviated name of the state and  
the payer's state identification number. In box 7, you may  
enter the amount of the state payment.  
The cost of current life insurance protection (report on  
Form W-2 or Form 1099-R);  
An employee's wages, travel or auto allowance, or  
bonuses and prizes (report on Form W-2); and  
The cost of group-term life insurance paid on behalf of a  
former employee (report on Form W-2).  
Box 2. Payer Made Direct Sales Totaling $5,000  
or More  
Enter an "X" in the checkbox for sales by you totaling $5,000  
or more of consumer products to a person on a buy-sell,  
deposit-commission, or other commission basis for resale (by  
the buyer or any other person) anywhere other than in a  
permanent retail establishment. Do not enter a dollar amount  
in this box.  
If a state tax department requires that you send them a  
paper copy of this form, use Copy 1 to provide information to  
the state tax department. Give Copy 2 to the recipient for use  
in filing the recipient's state income tax return.  
-11-  
Instr. for Forms 1099-MISC and 1099-NEC (Rev. 01-2024)  
       
Index  
A
Fish purchases for resale 7  
Fishing boat proceeds 6  
Foreign agricultural workers 5  
Form 1099-K 3, 9  
O
Agricultural workers, foreign 5  
Armed Forces 3, 8  
Other income 5  
Form W-9 2, 8  
P
Attorneys' fees and gross  
Former insurance salesperson,  
proceeds 2, 6, 8, 10  
Parking, value of 8  
termination payments 5, 6, 10, 11  
Payment card transactions 3, 6, 8, 11  
Prizes and awards 5  
B
G
Backup withholding 2, 6, 8, 11  
Broker transactions 1, 6  
Punitive damages 5  
Golden parachute payments 10  
Gross proceeds, attorneys 2, 6, 8, 10  
R
C
Rents 1, 4  
H
Canceled debt 3, 9  
Resale of fishes 7  
Royalties 1, 4  
Health care services, payments 1, 6,  
Coin-operated amusements 4  
Commissions 8, 10  
Construction project, escrow  
S
I
agent 3, 8  
Sale of fish to reseller by fishing boat  
Consumer products totaling $5,000,  
Independent contractor payments 8,  
operator 1  
indicator for 1  
Scholarships 3, 9  
Corporations, payments to 2, 8, 10  
Corrections 4, 9  
Indian gaming profits 3  
Informants, fees 3, 9  
Section 409A deferrals 7  
Section 409A income 7  
Section 530 worker 8, 10  
Self-employment tax 10  
State and local sales taxes 9  
State Information 7, 11  
Crop insurance proceeds 1, 6  
L
D
Lottery ticket agents, commissions 8,  
Damages 5  
Deceased employee's wages 2, 6, 11  
Difficulty-of-care payments 9  
Substitute payments in lieu of  
M
dividends or tax-exempt interest 1,  
Direct sales of consumer products for  
Medical payments 9  
resale 1  
Medical research payments 5  
Medical services payments 6  
Military differential payments 3, 8  
Miscellaneous information 1  
Direct Sales totaling $5,000 11  
Directors' fees 8, 10  
T
Taxpayer identification number 2, 8  
Termination payments, insurance  
E
salespeople 5, 10  
N
Excess golden parachute payments 7  
Exchange of services 10  
Trade or business 2, 7  
Transit passes 8  
Nonemployee compensation 7  
Nonemployee compensation  
F
W
(NEC) 10  
Nonqualified deferred  
FATCA filing requirements 4, 5, 7, 10  
Fees 1, 3, 7-10  
Withholding:  
compensation 7  
Backup 2, 6, 8, 11  
Indian gaming 3, 6, 11  
Fish purchases for cash 6  
-12-