IRS Form 1099-MISC
The University is required to file Form 1099-MISC, Miscellaneous Income, for calendar year payments made for (1) at least $10.00 in royalties, or (2) at least $600.00 in rents, services (including parts & materials), prizes and awards, other income payments, medical/ health care payments and legal services.
The University‘s reportable payments include:
- Rents:
- Machine rentals
- Pasture rentals
- Real estate rentals paid for office space unless paid to a real estate agent
- Royalties:
- Industrial
- Literary
- Patent
- Other income: This category is for other income required to be reported on Form 1099-MISC that is not reportable in one of the other boxes on the form.
- Prizes and awards that are not for services performed. (Include the fair market value of merchandise won if given in lieu of a cash award.)
- Blood donors
- Research subjects
- Compensatory damages
- Medical and health care payments:
- Physician and other supplier/provider of medical or health care services.
- If the provider is part of a corporation, list the corporation as the recipient instead of the individual.
- Use the corporation’s Tax Identification Number and not the individual’s SSN.
- Corporations are not excluded for medical/health care services. This income is reportable.
- If the provider is part of a corporation, list the corporation as the recipient instead of the individual.
- Medical transcriptions are not medical services, but are reportable under “Non-employee compensation.”
- Physician and other supplier/provider of medical or health care services.
- Non-employee compensation:
- Includes fees for services performed, or other forms of compensation for services performed for the University by an individual who is not a University employee. If payment includes reimbursement for expenses, only the fees for services are reportable. Non-employee compensation payments require their home or business address. The requesting University departmental address is not sufficient. If the following four conditions are met, a payment generally is reportable as non-employee compensation:
- the payment was made to someone who is not a University employee
- the payment was made for services in the course of the University’s trade or business
- the payment was made to someone other than a corporation, e.g., an individual or a partnership
- payments were made to the payee of at least $600.00 during the “calendar” year
- Examples of payments reported under Non-employee compensation are:
- Professional service fees such as to attorneys, accountants, and architects
- Payment for services, including parts or materials used to perform the services if supplying the parts or materials was incidental to providing the service
- Payments to non-employee entertainers for services
- Honorariums
- Guest Lecturers
- Independent Contractors
- Legal Fees
- Includes fees for services performed, or other forms of compensation for services performed for the University by an individual who is not a University employee. If payment includes reimbursement for expenses, only the fees for services are reportable. Non-employee compensation payments require their home or business address. The requesting University departmental address is not sufficient. If the following four conditions are met, a payment generally is reportable as non-employee compensation:
Reimbursement payments to any of the above are reportable as Non-employee compensation when receipts or documentation is not provided.
Exceptions to 1099 Reporting
The IRS does not require some payments to be reported on 1099-misc forms although they may be taxable to the recipient. These include:
- payments to a corporation (with the exception of medical/health care and legal fees)
- payments for merchandise
- payments of rent to real estate agents
- wages paid to employees (report on form W-2)
- Educational/Research Traineeship Grants
