What must individuals receiving a 1099-MISC do with that form?

Individuals receiving a 1099-MISC must use this form to report miscellaneous income on their tax returns. The 1099-MISC is provided by payers to report payments made to individuals who are not employees, including non-employee compensation, rents, royalties, and other income types. It is essential to include the amounts listed on the 1099-MISC when filing taxes, as failing to report this income can lead to penalties.

This form helps ensure that all income, especially from side jobs or freelance work, is accounted for in the tax calculation. When individuals use the 1099-MISC to report miscellaneous income, they are fulfilling their tax obligations and providing the IRS with an accurate account of their earnings from non-standard sources.