Form 1099-MISC Reporting


Indiana University uses the services of individuals or entities, including students, who are not treated as employees of the institution. Payments for these and other types of non-payroll payments are reported on Form 1099-MISC to US taxpayers as "other reportable payments." "Other reportable payments" are:

Generally, a Form 1099-MISC must be filed for any person or entity to whom IU has paid during the year:

  • At least $10 in royalties
  • At least $600 in rents, services, prizes and awards or other income payments

Scholarships or fellowships are not "other reportable payments" and a form will not be issued for these payments. Reportable payments to non-US persons or corporations are reportable on Form 1042-S and have a different set of rules.

Reporting 1099-MISC Payments

IU determines what is reportable on a Form 1099-MISC by the object code applied to each payment. Tax has designated a lengthy list of object codes as reportable on the Form 1099-MISC. The page linked below lists all object codes that will cause a payment to be reported on a 1099-MISC.

Common Mistakes

There are two common problems in using object codes as they relate to the Form 1099-MISC. Initiators either cause the university to under report or over report. First, initiators cause IU to not report a payment when an object code representing a general expense is used instead of a "reportable" object code for services. An example would be the use of object code 4166 (Printing & Duplicating) for a payment made to a graphic designer for services rendered. The initiator should have used object code 4520 (Contractual Services).

Second, initiators may prompt the university to issue a form to the payee on a "non-reportable" payment. One example is an employee inadvertently pays a vendor for the rental of space out-of-pocket. This payment is a business expense and should not be considered taxable income to the payee. When the object code 4680 (Space Rental) is used to reimburse the employee, it will show up on the 1099-MISC and be reported to the employee. The initiator should alert the Tax office about this reimbursement so a manual adjustment may be made to report the payment made to the vendor renting the space.