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Form 1099-MISC Explained - YouTube
Channel: TaxGuide101
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hi everyone this is aki with another
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video under the 15 most common tax forms
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um so let's go to our form 7 which is
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form 1099 miscellaneous income so
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many people received this form in the
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past when they were independent
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contractor
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or gig worker
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but two years ago the irs actually
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started issuing a new form for
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non-employee compensation that's the
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1099 nec because it was there was a lot
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of confusion with some of the items that
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are listed on miscellaneous income and
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reporting
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and so now they just separate completely
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so
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let's just let me show you the 1099
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miscellaneous now it has the
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non-employee compensation box one
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in the past it was actually listed in
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box seven on 1099 miscellaneous but
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that's not no longer the case for the
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past two years
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so for 2021 and 2020 that form it has
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been redesigned
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now you are have to be issued this form
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if you've been if you have received ten
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dollars in royalties or
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six hundred dollars in rents prices
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other income you might receive it even
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if you receive less
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and you should receive it by january
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31st however
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you know sometimes it can be delayed so
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you should expect it if you
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you know had some kind of compensation
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miscellaneous compensation it might be
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coming later to you now if you want more
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information i'm just going to go over
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the main
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um
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boxes and so you know this i prepared
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with box by box instruction kind of like
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a summary so you don't have to
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go over the whole booklet on ir's
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website however this is just general
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information for a majority of cases but
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you know there's always an exception and
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there's always different situations
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which may not apply to you so if you
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want more information
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look at the link
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below
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um to get
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the instructions from the irs website
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now at the top you know we have um the
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payer it could be a person it could be
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and
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and
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organization employer and so on and then
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you have the tin number which is
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taxpayer identification number it's kind
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of like a social
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for insta
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institution organization employers
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however it could be a social if it's a
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person that's paying you
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and then you have your information now
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everything on this form it's a
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it's a dummy it's an example that i use
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for jane
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and this is her address
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now it has the account number because
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maybe you were issued 1099 missionaries
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for different things from the same
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person or employer
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and so on so you'll be listed here so
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you want to double check that it's not
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duplicate maybe it's additional thing
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that you have to report
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now
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the year as i mentioned it's here it
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says miscellaneous information
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in box
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one will be rents more than 600 for real
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estate
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machine rental
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public housing
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other personal property and you would go
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on schedule e so you see information
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from this
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form you can go on different schedules
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now if you have royalty income in box
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two maybe you're selling a book and so
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on
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um but it could be also royalties from
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oil guess and mineral properties or
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copyright like i mentioned patents that
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would also go on schedule a and that
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will be listed in box two
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now box three could have other income i
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mean this is miscellaneous information
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for other income so it could be like
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prices awards taxable damages indian
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gaming profits and this would actually
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go on schedule one
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which is a supplemental schedule for 10
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40
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and
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so if you do your tax preparation in the
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software you just have to put that
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information in the software and it will
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allocate it to the right forms
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and you might have to provide additional
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information for these schedules but
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it should flow directly so it's not
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something you have to manually do unless
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you pay per file
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which i would discourage you from doing
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because it's just
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um
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consists of more errors and so on and
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it's much slower to process
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now box um
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four could have withholdings now that's
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really rare
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it could have that situation but
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rarely does but it could have that so
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this would be like a prepayment um of
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taxes
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on the rents royalties i mean for small
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amounts i haven't seen it but maybe for
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very large amounts it it does happen
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now
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um then they have some few boxes that
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are very specific like fishing boat
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process and so on so i'm not going to go
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over that kind of out of scope for this
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video
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um
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now box six could have payments of 600
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more for medical or health care services
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and that would go on schedule c
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as well as the box five
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proceed that would also go on schedule
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ski because that's considered kind of
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like a business so schedule e is more
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like
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um rent
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information royalties but schedule c
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would be like
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assuming you have some kind of business
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or some kind of gig on a site and you
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have to report that income
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and then there's some more specific
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situations i mean that's why you kind of
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have this miscellaneous form to list
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other possibilities that could be out
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there other kind of income like crap
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insurance proceeds you know these are
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really specific for
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for farmers um and that could you know
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be linked to the schedule f
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for farms
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um
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so this this can have a lot of different
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information um
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however majority of people will have box
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one or two or three
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filled out
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now another one that we want to probably
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go through
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box 13 access compensation subject to 20
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excise
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tax so that's something uh
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could be applicable for people with
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higher of higher income and then you
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have state information and that's also
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rarely filled out there's really state
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tax withheld for average typical
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taxpayers like again it could apply to
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you but for a majority of people
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these top boxes are the ones that you
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have to worry about and you would have
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to you know create either schedule e
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c or maybe f if you have any income here
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so this kind of like information flows
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into the other
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um
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schedules on your tax returns so so
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thanks so much for watching
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