What is a 1099-MISC used for?

A 1099-MISC reports miscellaneous income a business paid to a non-employee during the year. It covers rents (Box 1), royalties (Box 2), other income like prizes and awards (Box 3), medical and health care payments (Box 6), and gross proceeds paid to attorneys (Box 10). Payers file it when payments reach $600 ($2,000 after 2025), or $10 for royalties.

What is the difference between 1099-NEC and 1099-MISC?

Since tax year 2020, nonemployee compensation — pay for freelance or contractor services — goes on Form 1099-NEC, not the 1099-MISC. The 1099-MISC now handles only other miscellaneous payments like rents, royalties, prizes, and attorney proceeds. Before 2020, contractor pay was reported in Box 7 of the 1099-MISC.

Do I have to report a 1099-MISC on my tax return?

Yes. You must report all taxable income on your return even if you never received a 1099-MISC, and even if the amount is below the payer's reporting threshold. The form is a reminder to both you and the IRS, not the trigger for whether income is taxable. Because the IRS gets its own copy, leaving the income off can trigger a matching notice.

How long should I keep my 1099-MISC forms?

Keep each 1099-MISC at least 7 years from when you filed the related return. The standard IRS audit window is 3 years, but it extends to 6 years if income was substantially underreported — and miscellaneous income is easy to miss. Holding it 7 years covers the longest window and lets you prove what you reported.

Who should be issued a 1099-MISC?

A payer issues a 1099-MISC to anyone who isn't an employee that it paid at least $600 in rents, prizes, medical or health care payments, or other miscellaneous income during the year ($2,000 for payments made after 2025), plus anyone paid $10 or more in royalties. Payments for contractor services go on Form 1099-NEC instead.

Will I get a 1099-MISC for rental income?

If you collected $600 or more in rent through a business or property manager, the payer generally reports it in Box 1 of a 1099-MISC. Rent paid directly by an individual tenant for a personal residence usually isn't reported on a 1099-MISC, but you still must report all rental income on your tax return regardless of whether a form was issued.

Tax

Form 1099-MISC

A Form 1099-MISC is an IRS information return that reports miscellaneous income a business paid to someone who isn't an employee — including rents, royalties, prizes, medical and health care payments, and gross proceeds paid to an attorney. Payers issue it to recipients and the IRS when these payments reach the reporting threshold ($600 for payments made through 2025, rising to $2,000 for payments made after December 31, 2025; just $10 for royalties).

The 1099-MISC reporting threshold for rents, prizes, and other income is $600 for payments made through 2025, rising to $2,000 for payments made after December 31, 2025; royalties are reportable at just $10.

Source: IRS — Instructions for Forms 1099-MISC and 1099-NEC (04/2025)

Written & maintained by the Granite team · Last updated June 2026

Overview

Form 1099-MISC, "Miscellaneous Information," is one of the IRS's information returns. The business or person who made the payment (the "payer") fills it out and sends one copy to the recipient and another to the IRS. It captures income that doesn't fit other 1099 categories: Box 1 rents, Box 2 royalties, Box 3 other income (prizes, awards, taxable damages), Box 6 medical and health care payments, and Box 10 gross proceeds paid to an attorney, among others.

A key change to know: starting with tax year 2020, nonemployee compensation — what freelancers and independent contractors get paid for services — moved off the 1099-MISC and onto Form 1099-NEC. If a form shows contractor pay and was issued for 2020 or later, it's a 1099-NEC, not a 1099-MISC. Pre-2020 forms that reported nonemployee compensation in Box 7 are still genuine 1099-MISCs. You receive a 1099-MISC if you collected rent on property, earned royalties, won a prize, or received certain settlement or medical payments during the year.

When you’ll get your Form 1099-MISC

You collected $600 or more in rent on real estate, equipment, or other property you own (threshold rises to $2,000 for payments made after 2025)
You earned $10 or more in royalties from intellectual property, mineral rights, or creative work
You won a prize, award, or sweepstakes payout, or received other taxable income that isn't wages
You received $600 or more in medical or health care payments as a provider
You're an attorney who received gross proceeds from a settlement or legal action
You got a payment in lieu of dividends, crop insurance proceeds, or fishing boat proceeds

What’s on your Form 1099-MISC

These are the fields Granite reads and extracts automatically the moment you upload one.

Payer name: The business or individual who made the payment and issued the form.
Payer's TIN: The payer's taxpayer identification number (EIN or SSN), used to identify who reported the income to the IRS.
Recipient name: The person or business that received the income — you, as printed on the form.
Recipient's TIN: Your SSN or taxpayer ID, usually shown masked (e.g., XXX-XX-1234) for security.
Box 1 — Rents: Total rent paid to you during the year for real estate, equipment, or other property.
Box 2 — Royalties: Royalty income of $10 or more from intellectual property, mineral interests, or creative works.
Box 3 — Other income: Income that doesn't fit elsewhere — prizes, awards, and certain taxable settlement payments.
Box 4 — Federal income tax withheld: Any federal tax already withheld from your payments, often due to backup withholding.

How long to keep it

At least 7 years from the date you file the related tax return

The IRS can audit a return for 3 years normally, but 6 years if income was substantially underreported — and 1099-MISC income (rents, royalties, prizes) is exactly the kind that gets missed. Keeping it 7 years covers the longest standard audit window and lets you prove what was reported if the IRS's copy and yours ever disagree.

How Granite handles your Form 1099-MISC

When you upload a 1099-MISC, Granite recognizes the form on sight, pulls out the payer name, tax year, and box amounts (rents, royalties, other income, federal tax withheld), and titles it cleanly as "[Payer] [Year] 1099-MISC." It files the form into your tax-year collection automatically, so every 1099, W-2, and receipt for that filing year sits in one place. Search "royalties" or the payer's name and it surfaces instantly — even years later at audit time.

FAQ

Form 1099-MISC: common questions

What is a 1099-MISC used for?: A 1099-MISC reports miscellaneous income a business paid to a non-employee during the year. It covers rents (Box 1), royalties (Box 2), other income like prizes and awards (Box 3), medical and health care payments (Box 6), and gross proceeds paid to attorneys (Box 10). Payers file it when payments reach $600 ($2,000 after 2025), or $10 for royalties.
What is the difference between 1099-NEC and 1099-MISC?: Since tax year 2020, nonemployee compensation — pay for freelance or contractor services — goes on Form 1099-NEC, not the 1099-MISC. The 1099-MISC now handles only other miscellaneous payments like rents, royalties, prizes, and attorney proceeds. Before 2020, contractor pay was reported in Box 7 of the 1099-MISC.
Do I have to report a 1099-MISC on my tax return?: Yes. You must report all taxable income on your return even if you never received a 1099-MISC, and even if the amount is below the payer's reporting threshold. The form is a reminder to both you and the IRS, not the trigger for whether income is taxable. Because the IRS gets its own copy, leaving the income off can trigger a matching notice.
How long should I keep my 1099-MISC forms?: Keep each 1099-MISC at least 7 years from when you filed the related return. The standard IRS audit window is 3 years, but it extends to 6 years if income was substantially underreported — and miscellaneous income is easy to miss. Holding it 7 years covers the longest window and lets you prove what you reported.
Who should be issued a 1099-MISC?: A payer issues a 1099-MISC to anyone who isn't an employee that it paid at least $600 in rents, prizes, medical or health care payments, or other miscellaneous income during the year ($2,000 for payments made after 2025), plus anyone paid $10 or more in royalties. Payments for contractor services go on Form 1099-NEC instead.
Will I get a 1099-MISC for rental income?: If you collected $600 or more in rent through a business or property manager, the payer generally reports it in Box 1 of a 1099-MISC. Rent paid directly by an individual tenant for a personal residence usually isn't reported on a 1099-MISC, but you still must report all rental income on your tax return regardless of whether a form was issued.

Sources

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