Monday, January 26, 2009

1099 Misc for Royalty Payments

Heads up all you publishers. If you've paid your authors more than $10.00, you need to give them IRS Form 1099 Miscellaneous. The due date is Feb. 1, and here's the fun part: you can't download the form from the IRS website. I just went to the site and found the PDF which stated very clearly it is for INFORMATIONAL PURPOSES ONLY. Great! Looks like I'll be hunting for a form before Friday!

Here is a link to the instruction PDF for Form 1099.

Here's a good explanation about Form 1099 from Wise Geek:

(from article)A 1099-MISC is a type of tax form. It is used to report miscellaneous income, such as income earned as a non-employee, as well as fees, commissions, rents, or royalties paid during the last tax year. Payments for prizes, awards, legal services, and other non-employee activities may be reported on this form as well.

If a business pays you 600 US Dollars (USD) or more as a non-employee, it is legally required to report it to the Internal Revenue Service (IRS), using a 1099-MISC form. For royalty income, a 1099-MISC must be generated for $10 USD or more in royalties. As the payee, you’ll receive your own copy of the form. Once you receive it, you should check it carefully for errors and keep it in a safe place. You’ll need to use it to report this income on your tax return.

(click the link for the full article).

Just another fun thing to do when you're a publisher.

Now will someone please tell me WHY the form cannot be downloaded from the website?


Anonymous said...

I am a publisher and I use to file 1099s for royalty payments. No need to hunt down the forms, fill them out by hand and mail them to the IRS and the author. This service does it for you for $3.79 per 1099. Makes my life easy.

terena said...

Thank you so much for the info. I'll take a look.

Anonymous said...

I use The charges are much lower than $3.79 per 1099. You fill out the information on a excel sheet, email it to them and within a few hours they send you the 1099's. You mail the 1099's to the recipients and they file with the IRS.

Anonymous said...

You can find fillable 941 forms that you need at
You can edit your form, fill the text fields, add a variety of checkmarks, digitally eSign the PDF form and even add pictures. After your PDF form is completed, it can be printed, emailed, faxed or saved on your computer. You can even send fillable PDF forms to your customers, employees, vendors and partners.