Documents payments for services, rents, and other reportable transactions.

Key Payment Types Reported:

• Box 1: Rents ($600+ threshold)
• Box 2: Royalties ($10+ threshold)
• Box 3: Other income (prizes, awards, etc.)
• Box 6: Medical/healthcare payments
• Box 7: Nonemployee compensation (now on 1099-NEC)

• Landlords receiving rental income
• Authors and artists receiving royalties
• Contest and lottery winners
• Healthcare professionals receiving payments
• Fishermen receiving catch payments
• Attorneys receiving settlement payments (Box 10)

• Rental income: Report on Schedule E (passive income)
• Royalties: May be business or passive income
• Prizes/awards: Generally taxable as ordinary income
• Medical payments: Business income for healthcare providers
• Attorney fees: Special reporting rules apply

Filing requirements:

• Business income (consulting, etc.) → Schedule C
• Rental income → Schedule E
• Royalties → Schedule E or Schedule C depending on activity
• Prizes/awards → Form 1040 Line 8 (Other Income)
• Self-employment tax may apply → Schedule SE
• Verify all amounts match your records

• Note: Nonemployee compensation now goes on Form 1099-NEC
• Keep detailed records of all income and expenses
• Understand state filing requirements which may differ
• Pay estimated taxes if expecting significant liability
• Consider business deductions to offset income
• Watch for corrected 1099s arriving as late as March

• Form 1099-NEC (Nonemployee Compensation)
• Schedule C (Profit/Loss from Business)
• Schedule E (Supplemental Income)
• Schedule SE (Self-Employment Tax)
• Form 1040-ES (Estimated Tax Payments)
• Publication 334 (Tax Guide for Small Business)