Who Needs a 1099-Misc

Form 1099-Misc is for nonemployees who received payment. For year 2020 anyone who has received payment for services (and some products) of $600 or more, will need a 1099-Misc. There are exceptions but for now, let's focus on the most common individuals.

-Rent

-Awards and Prizes

-Income Payments

-Payment to attorneys

-Fishing boat proceeds and fish

-Crop Insurance proceeds

You will use Form W-9 to collect citizens of the U.S. tax identification number. That can be a social security number or individual tax identification number; in some instances an EIN. These can be requested electronically. In fact, QuickBooks Online has a feature that makes it very easy to do so.

Here is a link to information from the IRS about 1099-Misc https://www.irs.gov/instructions/i1099msc

It's best to start collecting the information well in advance of the January 31st filing deadline. In fact, I recommend, before issuing payment, collect the information needed on a W-9.