- According to the IRS, payments made with credits cards do not have to be reported on the Form 1099-Misc.
- Forms 1099-Misc can be filed electronically no matter the number processed. If 250 or more are processed, then they are required to be filed electronically.
- Payments made to attorneys should be included on the Form 1099-Misc. Payments are reported in Box 7 or Box 14 depending on the type of payment. Box 7 would include professional services fees paid. Box 14 would include payments made in connection with a legal settlement.
- Box 6, Medical and Healthcare Payments should include payments of $600 or more made to physicians, hospitals or other vendors for medical healthcare services. This would include charges for physicals, drug testing etc. If you are only purchasing supplies and no service is provided, do not issue Form 1099- Misc. If supplies are provided as a part of a service (i.e. injection, drugs etc.) then include the total for supplies and services in Box 6. Payments to pharmacies for prescription drugs or insurance companies for premiums for insurance coverage does not have to be reported on the Form 1099-Misc.
Legal and Tax Advice Disclaimer:
The information presented above does not constitute legal advice or tax advice. The authors and Heinfeld, Meech & Co., P.C. make no claims about its accuracy, completeness, or currency of information presented, including any external references provided. The authors are not acting as your tax consultant or attorney. Legal rules and tax rules change frequently, therefore, we cannot guarantee that any information is accurate or up to date.The information presented in this webinar is not intended to be used for the purpose of state or federal tax penalty protection. The law varies widely from jurisdiction to jurisdiction, and it is subject to varying interpretation. Legal advice, including tax advice, must always be tailored to your circumstances, and no content of this presentation should be viewed as a substitute for the advice of a competent attorney. Please consult your legal counsel for advice pertaining to your specific organization.
