Checklist for Year End 2025: FORM 1099 MISC - Miscellaneous Information
- BrightBooks Expert
- 3 days ago
- 2 min read
Did you know that the IRS recognizes 21 types of Form 1099? One of them is the Form 1099MISC.
It is that time of year again when businesses must issue Form 1099 MISC
What is the difference between Form 1099 NEC and Form 1099 MISC? The 1099 NEC form goes to people and unincorporated entities for services rendered. The 1099 MISC is the catch all for all other types of reportable taxable income with varying levels of thresholds.
Below are examples of the most common types:
Royalties for patents, copyrights or natural resources over $10
Tax exempt interest or cash in lieu of dividends over $10
Rents paid for the use of real estate for office or land- over $600
Rental equipment payments for heavy machinery and / or tools over $600
Medical and health care payments over $600
Prizes and Awards - over $600 these are considered taxable income whether they are cash, gift cards or tangible personal property. Non Cash items are reported at their fair market value on the date the prize was awarded Â
Legal Settlements over $600
Direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment
There is one category that is a bit more complex that can receive both 1099 NEC and 1099 MISC – Lawyers and Law Firms even if they are a corporation, LLC of LLP if the payments in a calendar year exceed the $600 threshold.
Form 1099NEC would be used for payments of $600 or more for legal fees
Form 1099MISC would be used for gross proceeds paid to attorneys
The best way to ensure you have all the necessary and correct information from the recipient of the tax form is to obtain a Form W-9 from that person/entity.
Deadline for filing is January 31, 2026, to recipients and to the IRS.
If you have more than 10 forms, you must file electronically with the IRS and state(s).
Less than 10 forms can be paper filed with the IRS and some State.
Be sure to check your state requirements for filing as they may differ from the federal requirements.
As with any tax form, if you have any questions or need filing assistance, BrightBooks is here to help.
BrightBooks is here to help. Contact us for bookkeeping assistance.