How to report payments with Information Returns

If you make or receive payments in your business, you may have to report them to the IRS on information returns, depending on the type and value of the payment. Examples include wages, tips, and payments to non-employees over $600.

The IRS compares the payments shown on the information returns with each person's income tax return to see if the payments were included in income. You must give a copy of each information return you are required to file to
the recipient or payer.

In addition to the forms described below, you may have to use other returns to report certain kinds of payments or transactions. For more details on information returns and when you have to file them, see the General Instructions for Certain Information Returns

Form W-2

You must file Form W-2, Wage and Tax Statement, to report payments to your employees, such as wages, tips, and other compensation, withheld income, social security, and Medicare taxes. For more information on what to report on Form W-2, see the Instructions for Forms W-2 and W-3.

Form 1099-MISC

Use Form 1099-MISC, Miscellaneous Income, to report certain payments you make in your trade or business. These payments include the following items:
• Royalty payments of $10 or more.
• Rent payments of $600 or more, other than rents paid
to real estate agents.
• Prizes and awards of $600 or more that are not for
services, such as winnings on TV or radio shows.
• Payments to certain crew members by operators of
fishing boats.
• Cash payments of $600 or more for fish (or other
aquatic life) you purchase from anyone engaged in the
trade or business of catching fish.


Either the Form 1099-MISC or Form 1099-NEC can be
used to report sales totaling $5,000 or more of consumer
products to a person on a buy-sell, deposit-commission,
or other commission basis for resale anywhere other than
in a permanent retail establishment. For more information
on what to report on Form 1099-MISC, see here.

Form 1099-NEC

Use Form 1099-NEC, Nonemployee Compensation, to report certain payments you make in your trade or business. These payments include the following items:

  • Payments of $600 or more for services performed by someone who is not your employee.
  • If you withheld certain federal income tax under the backup withholding rules regardless of the amount of the payment.

You may choose to report direct sales of $5,000 or more of consumer goods to a person for resale on Form 1099-NEC rather than Form 1099-MISC. For more information on what to report on Form 1099-NEC, see here.

Form 8300

You must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if you receive more than $10,000 in cash in one transaction or two or more related business transactions. Cash includes U.S. and foreign coin and currency. It also includes certain monetary instruments such as cashier's and traveler's checks and money orders. For more information, see
Pub. 1544.