Definition:

A 1099-MISC form is used to report miscellaneous income to the IRS. This form is used for:

• Income earned by an independent contractor but not an employee
  
• Fees, commissions, rents, or royalties paid
  
• Payment for prizes, awards, or legal services
  
• Excess golden parachute payments
  
• Medical and health care payments

If you paid $600 or more to a non-employee or $10 or more in royalties during the year, you must send that person a 1099-MISC showing the total amount you paid for that year.

The 1099-MISC Must be submitted to the payee by January 31 of the following year, and it must also be submitted to the Internal Revenue Service (IRS) by the end of February.

Pages to 1099-MISC
The 1099-MISC is a multi-part form.

• Copy A is submitted to the IRS by the payer
  
• Copy 1 is submitted to the state tax department by the payer
  
• Copy B is for the recipient
  
• Copy 2 is given to the recipient for filing with the state tax return.
  
• Copy C is kept by the payer.

Read more about how to prepare Form 1099-MISC for 2011

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