MISC form is used for broad variety of purposes during the taxation year. Some people may heard of it, some people use it and some are being surprised getting it by snail mail.

Let’s find out in which situations you will certainly not come across it.

W-9 and other significations of 1099 form

First of all – all independent contractors should definitely know about W-9 blank. It is used to provide work giver with needed information about the person being hired as follows: SSN / EIN and other data. MISC form just records this info alongside with amount of payment to be later on sent to IRS. Also sellers who work as S or C-Corp (plus LLC and partnership that pay taxes) don’t need 1099 doc and they state that in W-9 as well – might be helpful.

Your own business

If you paid for services less than 600 dollars in a year you are not obliged to report it. If the total sum was 599 – this doesn’t pass. (This requirement usually does not apply to corporations receiving payments). There are minimum sums for other variants of MISC. For instance – 10 dollars is minimum for royalties. Also, if you just gave money for any service that does not connect with your business – there is no need to start reading 1099 form instructions right away. Tax season is long enough and requires no rush.

Sales and rent pay

On its own form 1099 instructions have some exceptions and special rules created for occasions when you buy something under specific circumstances. You might be surprised but rule 600 is applicable to all cases when you deal with:

  1. fish/fishing boat sales
  2. paying for rent (provide your householder with fillable blank)
  3. getting medical services
  4. prize (not the ones you give to employees)
  5. buying something that totally worth 6 hundred bucks
  6. getting crop insurance;

As far as each rule has an exception – each time you doubt make sure to contact IRS or lawyer for clarification. There are penalties for those who don’t send needed document due to a certain date and this time there are no exceptions.