1099-MISC

• 1). Enter payer's information into large box in top left corner of the Form 1099-MISC. Below the large box and to the left, fill in the payer's federal identification number, which, if a business, will be the Employer Identification Number, and if an individual, will be a Social Security number.
  
  
• 2). Enter the recipient's information in the boxes below the large box. The IRS requires the Social Security number, name and a current address for the person who was paid miscellaneous income.
  
  
• 3). Calculate the amounts paid in the different categories. These categories include rents, royalties, other income, fishing boat proceeds, medical and health care payments and non-employee compensation. Less used boxes include Box 8 for substitute payments in lieu of dividends. If your company does not issue distributions at the end of the year, which would require using a 1099-DIV, you may choose to make a substitute payment. Box 9 is for those who have sold company goods for resale. Box 10 is for payments from crop insurance for farmers who have lost crops for one reason or another. Boxes 11 and 12 are kept blank on purpose; these require no entry. Box 13 is for what is called excess golden parachute payments. When a CEO leaves a company abruptly, the golden parachute is the amount paid to compensate the CEO for his expenses in leaving the company. The excess is the amount that exceeds the base amount of a severance package.
  
  
• 4). Enter the proceeds your company made to an attorney in Box 14, whether that amount was used or not. Box 15a and b are for Section 409A Deferrals, which are amounts over $600 that are deferred to a later time period.
  
  
• 5). Fill out the State information located at the bottom of the 1099, including the state identification number, the state in which the income was earned, and state taxes withheld.
  
  
• 6). Send the "red" copy of the 1099-MISC to the IRS, and a copy to the person or company that was paid, and keep a copy for your records.
  
  

1099-B - Proceeds from Broker and Barter Exchange Transactions

• 1). Note the similarities between the 1099-MISC and other forms 1099. The payer and recipient information will be in the same location. The boxes cover the income from brokers and barter exchanges.
  
  
• 2). Fill in boxes 1a, 1b and 2 with the dates of the sale, the CUSIP, or Committee on Uniform Securities Identification Procedures is an identification number for each security or stock sold. Box 3 is for the value of of goods or services that are bartered or traded for. Box 4 is for any federal taxes withheld from the payments made.
  
  
• 3). Enter the information for the shares sold or exchanged in Boxes 5, 6 and 7. Profits for the current year are entered in Box 8, and unrealized profits into Box 9. Box 10 is for unrealized profits. In other words, if your company signs a contract to receive a certain amount of income on December 31 and has not received the money yet, this is an unrealized profit. Box 11 is the profit or loss from Box 8 added to the unrealized profits from the previous year in Box 9 and current year in Box 10.
  
  

1099-INT - Interest Income

• 1). Note that the payer and recipient information is in the same location as the previous two form 1099s.
  
  
• 2). Enter the amount of interest income paid in Box 1. Box 2 is for the early withdrawal penalty if the interest was paid from an early distribution of a retirement account. Enter the amounts for interest on U.S. Savings Bonds in Box 3 and the federal income tax withheld in Box 4. Box 5 is for investment expenses that can be deducted from the income received; these expenses include fees or load funds on these interest-earning accounts.
  
  
• 3). Enter any foreign taxes paid and the government they were paid to as a result of earning interest outside of the United States in Boxes 6 and 7. Boxes 8, 9 and 10 are rarely used, as these boxes are for tax-exempt interest earned or private bond interest earned that is not taxable.