Form 1099-MISC 2024 Tax Year Checklist
Purpose
Form 1099-MISC reports miscellaneous income to recipients and the IRS for the 2024 tax year.
The April 2025 revision clarifies that Copy A (red) must be officially printed and scannable. Downloaded copies printed from IRS.gov cannot be filed with the IRS to avoid scanning penalties under the General Instructions for Certain Information Returns.
Filing Requirements Overview
Who Must File
File Form 1099-MISC for each person in the course of your business to whom you paid during 2024:
- At least $10 in royalties or broker payments instead of dividends or tax-exempt interest
- At least $600 in rents, prizes and awards, other income, fishing boat proceeds, medical and health care payments, crop insurance proceeds, gross proceeds to an attorney, Section 409A deferrals, or nonqualified deferred compensation
- Any amount of federal income tax withheld under backup withholding rules
Electronic Filing Threshold
If you have 10 or more information returns to file (calculated by aggregating all information returns across all form types), you must file electronically. This requirement became effective for returns filed on or after January 1, 2024. If you have fewer than 10 returns, you may file on paper, but we strongly encourage you to e-file.
Step-by-Step Filing Checklist
Step 1: Verify Taxpayer Identification Numbers
Ensure both payer TIN (EIN) and recipient TIN (SSN/ITIN/ATIN/EIN) are complete and accurate. The form displays only the last four digits of the TIN on Copy B for recipient protection, but the full TIN must be reported to the IRS. Use Form W-9 to collect recipient TINs. Incorrect TINs may result in backup withholding requirements and IRS penalties.
Step 2: Determine Reportable Income Categories
Identify which payments require reporting in specific boxes. Report rents in Box 1, royalties in Box 2, other income including prizes and awards in Box 3, fishing boat proceeds in Box 5, medical and health care payments in Box 6, crop insurance proceeds in Box 9, gross proceeds to attorneys in Box 10, fish purchased for resale in Box 11, Section 409A deferrals in Box 12, and nonqualified deferred compensation in Box 15. Each payment type has specific reporting thresholds and requirements.
Step 3: Report Direct Sales Indicator
Check Box 7 if consumer products totaling $5,000 or more were sold directly to the recipient for resale on a buy-sell, deposit-commission, or other basis. This checkbox triggers Schedule C reporting requirements for the recipient. You may alternatively report this information in Box 2 of Form 1099-NEC, but if you use Form 1099-NEC for direct sales, you must file by January 31.
Step 4: Report Federal Income Tax Withheld
Enter amounts in Box 4 only if backup withholding or Indian gaming profit withholding was applied. Backup withholding applies when a recipient fails to provide a correct TIN or the IRS notifies you to withhold. The current backup withholding rate is 24 percent. Verify withholding requirements against Form W-9 and Publication 505 guidance.
Step 5: Complete FATCA Filing Requirement
Check Box 13 if you are reporting this form to satisfy account reporting requirements under Chapter 4 of the Internal Revenue Code. This applies when the payer reports foreign financial accounts subject to FATCA regulations. Recipients who have accounts reported under FATCA may have corresponding Form 8938 filing obligations on their individual tax returns.
Step 6: Report Substitute Payments
Enter amounts in Box 8 for substitute payments instead of dividends or interest. These payments occur when your broker receives payments on your behalf as a result of a loan of your securities. Report amounts of $10 or more. This box applies to payments made by brokers and barter exchanges in securities lending transactions.
Step 7: Address Section 409A Nonqualified Deferred Compensation
For Box 15, report nonqualified deferred compensation that does not meet Section 409A requirements. Notify recipients that these amounts are subject to substantial additional tax on Form 1040, 1040-SR, or 1040-NR for 2024. This extra tax is calculated on Form 1040 and applies to current and prior-year deferrals that failed to meet the requirements of Section 409A. Amounts in Box 12 that are currently taxable should also be included in Box 15.
Step 8: Complete State Tax Information
Fill in Boxes 16-18 with state information, the payer’s state number, and state income tax withheld. Complete these boxes only if state income tax was actually withheld from payments. Some states require Copy 2 to be filed with the state tax department. Verify your state’s specific reporting requirements, as they may differ from federal requirements.
Step 9: Prepare Copy A for IRS Filing
Use the official scannable Copy A form ordered from IRS.gov/EmployerForms or file electronically. Do not file the downloaded and printed Copy A from IRS.gov, as it is not scannable and may result in penalties. If filing on paper, submit Copy A with Form 1096 transmittal. Electronic filing options include IRIS, FIRE system replacement, or approved third-party software.
Step 10: Furnish Copy B to Recipients
Provide Copy B to each recipient by January 31, 2025. Copy B shows that it is for the recipient’s records and contains important tax information. Include a statement that negligence penalties may apply if taxable income is not properly reported. Recipients use this information to complete their 2024 tax returns. If amounts are reported in Box 8 or Box 10, the recipient deadline is February 17, 2025.
Step 11: File Copy A with the IRS
Submit Form 1099-MISC to the IRS by February 28, 2025, if filing on paper, or March 31, 2025, if filing electronically. Include Form 1096 as a transmittal document when filing paper forms. If any due date falls on a Saturday, Sunday, or legal holiday, the deadline is the next business day. Electronic filers should use IRS-approved methods, including the Information Reporting Intake System.
Step 12: Prepare Copy 2 for State Filing
Complete Copy 2 if required by your state tax authority. Copy 2 must contain identical information to Copy A. Not all states require Copy 2 filing, so verify your state’s requirements. State filing deadlines may differ from federal deadlines. Maintain copies for your records in accordance with IRS recordkeeping requirements, which generally require three years from the filing date.
Step 13: Handle Incorrect Forms
If you issued an incorrect Form 1099-MISC and will not correct it, the recipient should attach a statement to their tax return explaining the discrepancy and report the correct information. If you discover an error, file a corrected Form 1099-MISC as soon as possible. Mark the CORRECTED box on the new form and submit it with Form 1096. For electronic corrections, use the same system you used for original filing.
Step 14: Maintain Proper Documentation
Keep copies of all filed Forms 1099-MISC, Forms 1096, recipient statements, and supporting documentation. Retain records of TIN solicitation efforts, including completed Forms W-9. Document backup withholding calculations and applications. These records support your filing in case of IRS inquiry and help you comply with the three-year statute of limitations for information return penalties.
Step 15: Verify Form Revision Date
Confirm you are using Form 1099-MISC (Rev. April 2025) for current filings. The April 2025 revision contains the most current box configurations and reporting requirements. Using outdated forms may result in processing delays or penalties. The IRS uses a continuous-use revision system, so forms remain valid until superseded by a newer revision.
Important 2024 Tax Year Updates
Electronic Filing Requirements
The e-file threshold decreased from 250 to 10 information returns, effective for returns filed on or after January 1, 2024. The 10-return threshold is calculated by aggregating all information returns across all form types. This significantly increases the number of businesses required to file electronically.
Box 7 Direct Sales Threshold
The $5,000 threshold for direct sales reporting remains unchanged for 2024. Recipients must report income on Schedule C if Box 7 is checked. This applies to direct sales of consumer products for resale on a buy-sell, deposit-commission, or other commission basis.
Section 409A Reporting
Box 12 reports current-year deferrals under nonqualified deferred compensation plans subject to Section 409A requirements, plus earnings on current and prior-year deferrals. Box 15 reports amounts from nonqualified plans that do not meet Section 409A requirements. Box 15 amounts trigger substantial additional tax obligations on the recipient’s return.
FATCA Compliance
The Box 13 checkbox indicates that the payer is using Form 1099-MISC to satisfy FATCA account reporting requirements under Chapter 4. Recipients with foreign financial accounts should review Form 8938 instructions to determine if they have separate FATCA filing obligations.
Scannable Form Requirements
The official printed version of Copy A is scannable, but the online version printed from IRS.gov is not. Filing a non-scannable Copy A may result in penalties. The General Instructions for Certain Information Returns contain current penalty provisions, which can be substantial for repeated or intentional violations.
Excess Golden Parachute Payments Transition
For the 2024 tax year reporting, excess golden parachute payments subject to a 20 percent excise tax under the current tax law may still be reported in Box 14 of Form 1099-MISC. However, effective for tax year 2025 and forward, these payments will be noted in Box 3 of Form 1099-NEC. Plan for this transition if your business makes golden parachute payments.
Common Exceptions
Certain payments do not require Form 1099-MISC reporting, including payments to corporations (except for medical and health care payments, substitute payments, attorney gross proceeds, and fish purchases for resale), payments for merchandise, payments of rent to real estate agents or property managers, wages to employees reported on Form W-2, payments to tax-exempt organizations, and credit card or payment card transactions reported on Form 1099-K.
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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.
