How to Fill Out a 1099 Form

There are numerous 1099 forms used to report a variety of transactions. However, the most common 1099 for a small business is form 1099-MISC, which is used to report miscellaneous income payments to non-employees (contractors). This 1099 form is due to the contractor before January 31 and to the IRS before February 28 of the following year. Copies should also be sent to states where required.

IMPORTANT: Because paper forms are scanned during processing, you cannot file 1099 forms that you print from the IRS website with the IRS.
Download a 1099 software to Print 1099 Forms

Most Popular 1099 Boxes Explained

Box 1. Rents
Enter amounts of $600 or more for all types of rents, such as real estate rentals paid for office space (unless paid to a real estate agent), machine rentals (for example, renting a bulldozer to level your parking lot), and pasture rentals (for example, farmers paying for the use of grazing land). If the machine rental is part of a contract that includes both the use of the machine and the operator, the rental should be prorated between the rent of the machine (reported in box 1) and the operator's charge (reported as nonemployee compensation in box 7).

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.

1099 MISC Box 7. Nonemployee Compensation
Enter nonemployee compensation of $600 or more. Include fees, commissions, prizes and awards for services performed as a nonemployee, other forms of compensation for services performed for your trade or business by an individual who is not your employee, and fish purchases for cash. 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.

What is nonemployee compensation?
If the following four conditions are met, you must generally report a payment as nonemployee compensation.
You made the payment to someone who is not your employee;

You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);

You made the payment to an individual, partnership, estate, or, in some cases, a corporation; and

You made payments to the payee of at least $600 during the year.