Form 1099-MISC is used to report miscellaneous compensation including medical and healthcare payments, rents, prizes, awards, certain payments to attorneys and various other payments. 1099-MISC Box-6 is where payments of $600 or more made to a physician, nurse, expert giving testimony, drug screening service, lab service, hospital, and other supplier or provider of medical or health care service are reportable. If payment is made to a corporation, the proper way to report is to list the corporation as the recipient rather than an individual providing medical services. Payments often include charges for dentures, drugs, injections, or other comparable items and are subject to information reporting. If your company is a medical and health care insurance company, payments made under health, accident, and sickness insurance programs, payments are reportable.
Insurance premium payments should NOT be included on Form 1099-MISC. Premiums are not considered a “service.” Most insurance agencies do not receive a 1099-MISC as businesses pay insurance companies, not agents. Payments to pharmacies for prescription drugs are not reportable. Payments made to tax-exempt hospitals and extra-care facilities do not require reporting in Box 6. Payments made to a tax-exempt hospital or extended care facility or to a hospital or extended care facility owned and operated by the United States government are not reportable.
Payments made under a Flexible Spending Arrangement (“FSA”, as defined in section 106(c)(2)) or a Health Reimbursement Arrangement (“HRA”) are treated as employer-provided coverage under an accident or health plan for purposes of section 106 and are exempt from the reporting requirements.
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