Form 1099-MISC reports miscellaneous income such as rent, royalties, prizes, and medical payments of $600 or more.
Why Form 1099-MISC matters for employers
After the IRS reintroduced Form 1099-NEC in 2020 specifically for contractor payments, Form 1099-MISC was restructured to cover other types of miscellaneous income. Businesses must file 1099-MISC for payments of $600 or more for rent, royalties, prizes and awards, medical and health care payments, attorney gross proceeds, crop insurance proceeds, and several other categories.
The filing deadline for 1099-MISC is February 28 for paper filing or March 31 for electronic filing - later than the January 31 deadline for 1099-NEC. The recipient copy is still due by January 31.
One of the most common uses of 1099-MISC for businesses is reporting rent paid to landlords who are individuals or pass-through entities. If your company pays $600 or more in rent to a non-corporate landlord during the year, a 1099-MISC is required even though rent is not compensation for services.
Prizes and awards given to non-employees (such as contest winnings) of $600 or more also require a 1099-MISC. Backup withholding at 24% applies when the recipient does not provide a valid TIN.
How BEG handles 1099-MISC filing for clients
BEG Managed Payroll tracks reportable payments, collects W-9s, and files all required 1099 forms as part of fully managed payroll at $25-$45 per employee per month. Learn about BEG Managed Payroll.
Frequently asked questions
What is the difference between 1099-NEC and 1099-MISC?
Form 1099-NEC is specifically for non-employee compensation paid to independent contractors. Form 1099-MISC covers other miscellaneous income categories including rent, royalties, prizes, and medical payments.
When is Form 1099-MISC due?
The recipient copy is due January 31. The IRS copy is due February 28 for paper filing or March 31 for electronic filing.
Do I need to send 1099-MISC to my corporate landlord?
No. Rent payments to C-corporations or S-corporations do not require a 1099-MISC. The exemption applies to corporations only, not LLCs taxed as partnerships.
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About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
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