Form 1099-MISC
IRS information return for miscellaneous income types (rent, royalties, prizes).
Definition
Form 1099-MISC reports payments for rent, royalties, prizes, awards, and other miscellaneous categories. Non-employee compensation moved to Form 1099-NEC in 2020.
Context
Royalty payments to US persons reported on 1099-MISC; royalty payments to non-residents reported on 1042-S.
Example
A US LLC pays royalties to a US-based author. Form 1099-MISC reports the royalty payment.
Common pitfalls
- Don't confuse with 1099-NEC for non-employee compensation.
- Royalty payments to non-residents use 1042-S, not 1099-MISC.