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About 1099 MISC 2018

Form 1099-MISC is an Internal Revenue Service (IRS) tax form used to report miscellaneous income received for services provided by an individual or a business to another party during the year. The form specifies the amount paid to the recipient and is typically used to report non-employee income. As for who needs it, the payer or business that made payments of $600 or more to an individual or a business during the tax year is required to issue a Form 1099-MISC to the recipient and file a copy with the IRS. Some common scenarios where a Form 1099-MISC may be necessary include: 1. Freelancers or independent contractors who provided services to a business. 2. Individuals who received rental income from a property. 3. Individuals who received royalties or other income from intellectual property. 4. Non-employee compensation paid to self-employed individuals or subcontractors. 5. Prizes and awards exceeding $600 in value. 6. Payments made to attorneys, including legal settlements. It is important to note that the rules for Form 1099-MISC can vary depending on the specific circumstances, so it is advisable to consult the IRS guidelines or seek professional tax advice to ensure compliance with reporting requirements.

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