What is included in “medical and healthcare payments” to be reported in Box 6 of Form 1099-MISC?

Medical and health care payments include payments of $600 or more to each physician or other supplier or provider of medical or health care services.   Payments to persons providing health care services often include charges for injections, drugs, dentures, and similar items.  However, you are not required to report payments to pharmacies for prescription drugs.  Also, payments for insurance premiums is not included as a premium is not considered a “service.”  You are paying for insurance that may or may not be used.    However, if you are a medical and health care insurance company, payments made under health, accident, and sickness insurance programs are reportable.  If payment is made to a corporation, list the corporation as the recipient rather than the individual providing the services.

The exemption from issuing Form 1099-MISC to a corporation does not apply to payments for medical or healthcare services provided by corporations, including professional corporations.  If payment is made to a corporation, list the corporation as the recipient rather than the individual providing the services.  However, you are not required to report 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 (or its possessions), a state, the District of Columbia, or any of their political subdivisions, agencies or instrumentalities.

What is the 1099-MISC form used for?

Businesses file Form 1099-MISC, Miscellaneous Income for each person (who’s not an employee) and unincorporated business (with some exceptions) in the course of your business to whom you have paid during the year:

    • At least $10 in royalties (see the instructions for box 2) or broker payments in lieu of dividends or tax-exempt interest (see the instructions for box 8);
    • At least $600 in:
    1. Rents (box 1);
    2. Prizes and awards (boxes 3);
    3. Other income payments (box 3);
    4. Generally, the cash paid from a notional principal contract to an individual, partnership, or estate (box 3);
    5. Any fishing boat proceeds (box 5);
    6. Medical and health care payments (box 6);
    7. Crop insurance proceeds (box 9);
    8. Payments to an attorney (box 10) (see Payments to attorneys, in 1099 instructions);
    9. Section 409A deferrals (box 12); or
    10. Nonqualified deferred compensation (box 14).

In addition, use Form 1099-MISC to report that you made direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment (box 7).

You also must file Form 1099-MISC for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment.

For additional information see the Instructions for Form 1099-MISC 

Are medical and healthcare payments reportable to a corporation on a 1099-MISC form?

Yes.  Medical and healthcare payments made to corporations generally must be reported on a 1099-MISC form.  Payments to corporations are typically not reportable, however, medical and healthcare payments are one of the exceptions to this general rule.  The term corporation includes C corporations, S corporations and LLCs that have elected C or S corporation status.

For additional information see the 2019 Instructions for Form 1099-MISC 

Are medical and health care payments reportable on a 1099-MISC form?

Yes.  Payments of $600 or more made in the course of your trade or business to each physician or other supplier or provider of medical or health care services are reportable. Include payments made by medical and health care insurers under health, accident, and sickness insurance programs. If payment is made to a corporation, list the corporation as the recipient rather than the individual providing the services. Payments to persons providing health care services often include charges for injections, drugs, dentures, and similar items. In these cases, the entire payment is subject to information reporting. You are not required to report payments to pharmacies for prescription drugs.

The exemption from issuing Form 1099-MISC to a corporation does not apply to payments for medical or health care services provided by corporations, including professional corporations. However, you are not required to report 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 (or its possessions), a state, the District of Columbia, or any of their political subdivisions, agencies, or instrumentalities.

For additional information see the 2019 Instructions for Form 1099-MISC