Form 1099-MISC (Rev. January 2022)—Tax Year 2022 Checklist
Purpose
Form 1099-MISC reports miscellaneous income, including rents, royalties, attorney fees, nonqualified deferred compensation, excess golden parachute payments, and backup withholding to recipients and the IRS. The January 2022 revision requires payers to file scannable Copy A forms with Form 1096. Printed copies downloaded from the IRS website cannot be filed with the IRS, as they are not scannable and may result in penalties.
Payer Filing Steps
Step 1: Order Official Scannable Copy A Forms
Order official scannable Copy A forms from IRS.gov/orderforms under the Employer and Information Returns section. Do not print Copy A from the IRS website. The official printed version is scannable, but the online version printed from the website is not. Filing non-scannable forms may result in penalties.
Step 2: Complete Payer Information
Enter the payer’s complete name, street address, city, state, country, ZIP code, and telephone number in the payer header section. Use the payer’s Employer Identification Number (EIN) as the payer’s TIN. Ensure all information is accurate and complete.
Step 3: Complete Recipient Information
Enter the recipient’s complete name, street address, city, state, country, and ZIP code. Use the recipient’s Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), Adoption Taxpayer Identification Number (ATIN), or EIN as the recipient’s TIN. Report the full nine-digit TIN to the IRS, though Copy B furnished to the recipient may display only the last four digits for privacy protection.
Step 4: Report Rents in Box 1
Report rents of $600 or more in Box 1 for real estate rentals, machine rentals, and pasture rentals. Do not report rent payments made to real estate agents or property managers, but agents and managers must report amounts paid to property owners. Report only if you did not provide significant services to the tenant and did not sell real estate as a business.
Step 5: Report Royalties in Box 2
Report royalties of $10 or more in Box 2 for payments from oil, gas, mineral properties, copyrights, and patents. Report gross royalties before reduction for severance taxes or other withholding. For timber, coal, and iron ore royalties, refer to Publication 544 for specific guidance.
Step 6: Report Other Income in Box 3
Report payments of $600 or more in Box 3 for deceased employee benefits, prizes, awards, taxable damages, Indian gaming profits, and other miscellaneous income not reportable in different boxes. Identify the payment type. Do not report punitive damages related to physical injury or damages for replacement of capital. Include payments to foreign agricultural workers and certain termination payments to former self-employed insurance salespeople.
Step 7: Report Federal Income Tax Withheld in Box 4
Report backup withholding or Indian gaming profit withholding in Box 4. Backup withholding applies when recipients fail to provide their TIN or under other circumstances specified in the backup withholding rules. The backup withholding rate and substantiation requirements are detailed in the General Instructions for Certain Information Returns.
Step 8: Report Fishing Boat Proceeds in Box 5
If you are a fishing boat operator, report each crew member’s share of proceeds in Box 5 for boats with normally fewer than 10 crew members. Include cash payments up to $100 per trip that are contingent on minimum catch and paid for additional duties. Do not report wages that are reportable on Form W-2.
Step 9: Report Medical and Health Care Payments in Box 6
Report payments of $600 or more in Box 6 made to physicians or other medical and health care service providers. Include payments made by medical and health insurers under health, accident, and sickness insurance programs. If payment is made to a corporation, list the corporation as the recipient. Payments to tax-exempt hospitals and government-operated facilities are exempt from reporting.
Step 10: Check Box 7 for Direct Sales
Check Box 7 if you made direct sales totaling $5,000 or more of consumer products to the recipient for resale on a buy-sell, deposit-commission, or other commission basis anywhere other than in a permanent retail establishment. Enter an “X” in the checkbox only—do not enter a dollar amount. You may use either Form 1099-MISC Box 7 or Form 1099-NEC Box 2 to report these sales, but not both.
Step 11: Report Additional Boxes 8 Through 12
Report substitute payments instead of dividends or interest in Box 8 for amounts of $10 or more. Report crop insurance proceeds in Box 9 for payments of $600 or more to farmers unless expenses were capitalized. Report gross attorney proceeds in Box 10 for payments of $600 or more made in connection with legal services. Report fish purchased for resale in Box 11 for cash payments of $600 or more. Report Section 409A deferrals in Box 12 if you choose to complete this optional box.
Step 12: Check Box 13 for FATCA Filing Requirement
Check Box 13 if you are a U.S. payer reporting on Form 1099 to satisfy chapter 4 account reporting obligations under the Foreign Account Tax Compliance Act (FATCA). Also check this box if you are a foreign financial institution reporting a U.S. account pursuant to specific FATCA elections, even if no payments were made during the year.
Step 13: Report Excess Golden Parachute Payments in Box 14
Report total excess golden parachute payments in Box 14. These payments are subject to a 20 percent excise tax. Recipients must report this amount on their tax return and calculate the excise tax in accordance with their tax return instructions.
Step 14: Report Nonqualified Deferred Compensation in Box 15
Report all amounts deferred, including earnings on deferred quantities, that are includible in income under Section 409A in Box 15 because the nonqualified deferred compensation plan fails to satisfy Section 409A requirements. Do not include amounts previously reported on prior-year forms or amounts subject to substantial risk of forfeiture.
Amounts reported in Box 15 are subject to two additional taxes: a 20 percent additional income tax on the amount required to be included in gross income, plus a premium interest tax calculated at the IRS underpayment rate plus 1 percentage point on the resulting tax underpayment. Recipients must report these additional taxes on their tax return.
Step 15: Report State Tax Information and File Forms
Report state or local income tax withheld in Boxes 16 through 18. Enter the state abbreviation and payer’s state identification number in Box 17. File Copy A with Form 1096 by February 28 if filing on paper or March 31 if filing electronically. Furnish Copy B to recipients by January 31—file Copy 1 with applicable state tax departments according to state requirements. Retain Copy C for your records.
Year-Specific 2022 Updates
The January 2022 revision explicitly prohibits filing printed Copy A downloaded from IRS.gov. Payers must order official scannable forms from IRS.gov/orderforms to avoid penalties under Part O of the General Instructions for Certain Information Returns.
Section 409A deferral reporting in Box 12 applies to nonemployee deferrals under Section 409A plans. The 2022 instructions clarify that current-year deferrals plus earnings on current and prior deferrals must be aggregated and reported.
Box 15 nonqualified deferred compensation income that fails to meet Section 409A requirements is subject to two separate additional taxes: a 20 percent additional income tax and a premium interest tax. Recipients must report both taxes on Form 1040, 1040-SR, or 1040-NR, as instructed on their tax return.
Excess golden parachute payments in Box 14 are subject to a 20 percent excise tax. The 2022 form and instructions maintain this fixed rate. Recipients must follow the instructions on their tax return for the proper reporting location.
The FATCA filing requirement checkbox in Box 13 indicates the payer is satisfying account reporting obligations under Chapter 4 of the Internal Revenue Code. Recipients may also have FATCA filing obligations and must review Form 8938 instructions to determine their requirements.
Form 1099-MISC and Form 1099-NEC have been converted to continuous-use forms. Both forms and instructions will be updated as needed rather than annually. Check IRS.gov/Form1099MISC or IRS.gov/Form1099NEC for the most recent versions.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
