Form 1099-MISC, Miscellaneous Information, is the IRS form a business uses to report payments such as rents, royalties, prizes, awards, medical and health care payments and gross proceeds paid to an attorney. Pay for a contractor's services goes on Form 1099-NEC instead. As of October 2026, the IRS instructions say that for tax years beginning after 2025 the main reporting threshold rises to $2,000, while royalties stay at $10.
That threshold change is the headline for anyone who's used to the old $600 rule. Everything below comes from the IRS Instructions for Forms 1099-MISC and 1099-NEC (Rev. December 2026), the revision you use to file 2026 information in early 2027, and the figures are as of October 2026.
Who has to send a 1099-MISC
Only payments you make in the course of your trade or business are reportable. Personal payments aren't. A business that pays $2,000 or more in the year for rents, prizes and awards, other income, medical and health care payments or crop insurance proceeds files a 1099-MISC for that payee, with lower triggers for a few boxes.
| Payment | Box | Reporting trigger in the Rev. 12-2026 instructions |
|---|---|---|
| Rents | Box 1 | $2,000 or more |
| Royalties | Box 2 | At least $10 |
| Other income, including prizes and awards not for services | Box 3 | $2,000 or more |
| Federal income tax withheld, such as backup withholding | Box 4 | Any amount withheld |
| Medical and health care payments | Box 6 | $2,000 or more |
| Direct sales of consumer products for resale | Box 7 | Checkbox for sales totaling $5,000 or more |
| Substitute payments in lieu of dividends or interest | Box 8 | At least $10 |
| Crop insurance proceeds | Box 9 | $2,000 or more |
| Gross proceeds paid to an attorney | Box 10 | $600 or more |
The instructions add that the $2,000 figure may be adjusted for inflation beginning in calendar year 2027, so check the current revision each year rather than assuming it's fixed.
New boxes on the December 2026 revision
- Box 13a, cash tips: the total designated as cash tips included in box 3, added to meet the new cash tip reporting rule.
- Box 13b, Treasury Tipped Occupation Code: up to two codes for the payee's tipped occupations.
- Box 14, overtime compensation: qualified overtime compensation included in box 3.
- Excess golden parachute payments are no longer reported on Form 1099-MISC. They now go in box 3 of Form 1099-NEC.
1099-MISC or 1099-NEC?
The two forms share one set of instructions, which is why they get mixed up. Nonemployee compensation for services goes on 1099-NEC. Rents, royalties, prizes and the other items in the table go on 1099-MISC. The direct sales checkbox can go on either box 7 of the MISC or box 2 of the NEC, but only one of them. If you want the side-by-side version, see 1099-MISC vs 1099-NEC or the full guide to Form 1099-NEC.
Card payments and third-party network transactions are a separate case. They're reported on Form 1099-K by the payment settlement entity and aren't subject to reporting on Form 1099-MISC or 1099-NEC.
Deadlines for 1099-MISC
| Step | Due date |
|---|---|
| Furnish the payee statement to the recipient | January 31 |
| File with the IRS on paper | February 28 |
| File with the IRS electronically | March 31 |
| Form 1099-NEC, for comparison | January 31, paper or electronic |
If a date falls on a Saturday, Sunday or legal holiday, the due date moves to the next business day. Leap years don't change the due date.
How to file a 1099-MISC, step by step
- List every business payment by payee and type for the year, and drop personal payments.
- Compare each payee's total against the trigger for its box: $2,000 for most, $10 for royalties and substitute payments, $600 for attorney gross proceeds.
- Collect the payee's taxpayer identification number before year end. You may truncate it on the payee's copy, but not on the copy you file with the IRS.
- Count your information returns. Since 2024 you must e-file if you have 10 or more in total, counting all types together.
- Send copy B by January 31 and file with the IRS by February 28 on paper or March 31 electronically.
If you're the one receiving a 1099-MISC
The payer files the same figures with the IRS, so the amounts on your copy should match what you report on your return. Check each box against your own records as soon as it arrives. A payer can send you one statement that covers every 1099-MISC payment type, so a single form may hold rent in box 1 and a prize in box 3 at the same time.
If something's wrong, such as a payment counted twice or a box that should be on a 1099-NEC, ask the payer for a corrected form rather than quietly reporting a different figure. And if box 4 shows federal income tax withheld, that's tax already paid on your behalf, which you claim on your return.
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Common 1099-MISC mistakes
- Still using the $600 trigger for rents and prizes paid in tax years after 2025.
- Putting contractor fees on the MISC when they belong on the NEC.
- Issuing a 1099-MISC for card payments that a processor already reports on a 1099-K.
- Checking VOID on a paper correction. The instructions warn that a checked VOID box tells IRS scanners to skip the form, so the correction never lands.
The verdict
If you rent an office, pay royalties or hand out prizes through a business, the 1099-MISC is still very much alive. The good news for 2026 payments is that far fewer small payees will need one, because most boxes now start at $2,000. Just don't let that lull you on royalties at $10 and attorney proceeds at $600, which haven't moved.
Frequently asked questions
What is Form 1099-MISC used for?
It reports business payments such as rents, royalties, prizes and awards, other income, medical and health care payments, crop insurance proceeds and gross proceeds paid to an attorney.
What is the 1099-MISC threshold after 2025?
For tax years beginning after 2025, the minimum reporting threshold for most 1099-MISC payments is $2,000, and it may be adjusted for inflation from 2027. Royalties stay at $10 and attorney gross proceeds at $600.
When is Form 1099-MISC due?
Give the recipient a copy by January 31, and file with the IRS by February 28 on paper or March 31 electronically.
Is contractor pay reported on 1099-MISC?
No. Nonemployee compensation for services goes on Form 1099-NEC.
Do I issue a 1099-MISC for card payments?
No. Payments made by card or through third-party networks are reported on Form 1099-K by the payment settlement entity.
What are the new boxes on Form 1099-MISC?
Box 13a for cash tips, box 13b for the Treasury Tipped Occupation Code and box 14 for overtime compensation.
