Form 1099-MISC is utilized by businesses to report miscellaneous payments made during the tax year as part of their trade or business activities. This form is employed to report various types of payments, including rent, medical and health care payments, cash payments, and more.

1099 misc form has to be filed by businesses/individuals when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit. However, nonprofit organizations are considered to be engaged in a trade or business and are subject to these reporting requirements. Other organizations subject to these reporting requirements include trusts of a qualified pension or profit-sharing plans of employers, certain organizations exempt from tax under section 501(c) or (d), farmers' cooperatives that are exempt from tax under section 521, and widely held fixed investment trusts. Payments by federal, state, or local government agencies are also reportable.

• At least $10 in royalties
• At least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish.
• Any fishing boat proceeds.
• Gross proceeds of $600 or more paid to an attorney.
• You must also file Form 1099-MISC for each person from whom you have withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

Some payments are not required to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include:

• Generally, payments to a corporation
• Payments for merchandise, telegrams, telephone, freight, storage, and similar items
• Payments of rent to real estate agents
• Wages paid to employees (to be reported on form W-2)
• Military differential wage payments made to employees while they are on active duty in the Armed Forces or other uniformed services (report on Form W-2)
• Business travel allowances paid to employees (may be reportable on Form W-2);
• Cost of current life insurance protection (report on Form W-2 or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.);
• Payments to a tax-exempt organization including tax-exempt trusts (IRAs, HSAs, Archer MSAs, and Coverdell ESAs), the United States, a state, the District of Columbia, a U.S. possession, or a foreign government