Form 1099-MISC Instructions for 2023

Form 1099-MISC has 17 boxes, allowing employers to report different payments. To get started, payers will need to provide some identification information.

• Payer Information: Enter the payer’s name, address, and telephone number.
• Taxpayer Identification Number: When filing Form 1099-MISC, it’s mandatory to enter the nine digits of the payer’s EIN/SSN in the
  respective field.
• Recipient Information: Enter the recipient’s name and valid address associated with the recipient’s details.
• Recipient’s TIN: Enter the nine-digits of the recipient’s EIN/SSN in the respective field. If the recipient does not have an EIN or SSN and only has ATIN or ITIN, you may enter it in the field.
• Account Number: You need to enter an account number when you file more than one form of 1099-MISC for the recipient. The account number must also be provided when you check the box of FATCA filing requirements. It’s also encouraged by the IRS to designate an account number for every Form 1099-MISC you file.

• Box 1 Rents

  In this section, enter any amounts paid for rent. Exclude those paid to a corporation.

• Box 2 Royalties

  Report any payments of $10 or more in royalties from oil, gas or mineral properties, or from intellectual property.

• Box 3 Other Income

  Enter any income of $60 or more that is not reportable on another section of Form 1099-MISC. This can include prizes and awards.

• Box 4 Federal Income Tax Withholding

  This box is for backup withholding. You may have withheld taxes because a recipient failing to furnish the correct TIN.

• Box 5 Fishing Boat Proceeds

  Enter the amount earned from fishing.

• Box 6 Medical And Health Care Payments

  Enter payments of $600 or more made to Medical or Healthcare providers.

• Box 7

  Use this box if you sold $5,000 or more of consumer products to a recipient for resale.

  Check this box if a payer sold a consumer product for $5,000 or more. This includes resale or buy-sell.

• Box 8 Substitute Payments In Lieu Of Dividends Or Interest

  Enter aggregate payments of $10 or more that brokers paid for dividends or tax-exempt interest as a loan.

• Box 9 Crop insurance proceeds

  Report crop insurance proceeds of $600 or more. There is an exception if the farmer informed the insurance companies that expenses have been capitalized under section 278, 263A, or 447.

• Box 10 Gross proceeds paid to an attorney

  If you paid an attorney $600 or more for legal services, enter that
  amount here.

• Box 11 Reserved For Future Use

• Box 12 Section 409A deferrals

  Report deferrals for a nonemployee under a nonqualified deferred compensation (NQDC) plan subject to section 409A. Also, report any earnings on current and prior year deferrals.

• Box 13 Excess golden parachute payments

  Enter any excess golden parachute payments, that is, the amount over the base amount.

• Boxes 14 Nonqualified deferred compensation

  Enter any deferred payments under an NQDC plan that do not meet the requirements of section 409A.

• Boxes 15 State tax withheld

  Enter the amount withheld from the contractor’s pay for state taxes.

• Boxes 16 State/Payer’s No

  Enter the abbreviated name of the state and payer’s state identification number. The payer’s state identification number is assigned by the state to deposit taxes.

• Boxes 17 State income

  Report the amount of the state payment.

  Note: The IRS doesn’t require Boxes 15-17. However, if you have amounts to report for the state, it is recommended that you fill out the information as your state may require a copy of
  Form 1099-MISC.