Revised IRS Form 1099 MISC Boxes Information 2021

As per the IRS 2020 guidelines, 1099 MISC boxes have been revised after reviving back Form 1099 NEC. In the 2021 tax year, the IRS again revised Form 1099 MISC boxes by adding the reserved boxes. Here are the details about the payments reported in the boxes:

Box 1- Rents

Use box 1 to report rents of $600 or more paid as rent paid for real estate, machine rentals, and pasture rentals on the course of business or trade.

Box 2- Royalties

Report the payment totaling $10 or more made as royalties from oil, gas, or other mineral properties, & for intangible properties for business purposes.

Box 3- Other income

Report compensation made of $600 or more as prizes or awards, deceased employee wages, payments to tribal members, punitive damages, H-2A visa agricultural worker not for services performed.

Box 4- Federal Income Tax withholding

Ensure to provide if any federal tax is withheld under backup withholding rules in this box.

Box 5- Fishing boat proceeds

Use box 5 to report fishing boat proceeds made for the purpose of business or trade.

Box 6- Medical and health care Payments

Payments made to a physician or other provider of medical or health care services totaling $600 or more.

Box 7-Payer made direct sales

If the payer made direct sales, check box 7. Otherwise, leave the box empty and also make sure not to enter any dollar amount in this box.

Box 8- Substitutes payments in lieu of dividends

If you made $10 or more payments in lieu of dividends or tax-exempt interests use this box.

Box 9 -Crop insurance proceeds

Crop insurance proceeds of $600 or more made to the farmers are reported in box 9 of Form 1099 MISC.

Box 10- Gross proceeds

Payments made to attorneys for performing legal services of $600 or more are reported in box 10.

Box 11- Fish purchased for resale

Total cash payments of $600 or more are made to an individual involved in the trade of catching fish.

Box 12 Section 409A deferrals

Enter the total deferred amount of $600 or more made to a non-employee under non-qualified plans.

Box 13- Excess golden parachute payments

Use box 13 to report the excess golden parachute payments.

Box 14- Non-qualified deferred compensation

Report non-qualified deferred compensation made in the course of business or trade.

Box 15-17- State information

For state taxes withheld, then use boxes 15, 16, 17 to report state tax withheld amount, state tax identification number, and state name.

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