A 1099 contains important tax information, which is also being reported to the Internal Revenue Service. If you received a 1099 form, the State of Maine's records show that you were paid money during the calendar year, which the IRS considers taxable. Some of the types of payments that qualify are rents, prizes or winnings, payments for services to non-employees, forestry cost share reimbursements and some types of payments for healthcare or medical assistance.
Contact your tax professional for assistance with tax rules and laws.
Below are common reasons a 1099 may have been issued:
- Form 1099-MISC
- Common reasons for receiving the 1099-MISC form:
- You have received at least $600 or more in payments from the State of Maine for rents (box 1), prizes (box 3), other income payments (box 3), fishing boat proceeds (box 5), medical and health services, which includes Corporations (box 6), crop insurance proceeds (box 9), attorney services, which includes Corporations (box 10), section 409A deferrals (box 12), or nonqualified deferred compensation (box 15).
- Form 1099-NEC (Non-Employee Compensation)
- Common reasons for receiving the 1099-NEC form:
- You have received at least $600 or more in payments from the State of Maine for services performed and you are not an employee of the State of Maine (box 1); or Payments to an attorney (box 1)
- Form 1099-G (certain Government Payments)
- Common reasons for receiving the 1099-G form:
- You have received at least $600 or more in payments from the State of Maine as part of a taxable grant (box 6)
Other common reasons a 1099 may have been issued:
- If you received Temporary Assistance for Needy Families (TANF) or Parents as Scholars (PAS) payments OR if you received payments from the State of Maine through the ASPIRE program for transportation costs and other support services, these benefits are not taxable income and should not have been reported on a 1099 form. If you believe that there is an error on your 1099 form because of your connection to the programs listed in this paragraph, please call Kelley Hooper, Department of Health & Human Services at (207) 624-4177 or email her at kelley.hooper@maine.gov.
- If you are a child care provider for families working with the ASPIRE Program, the payment you received for these services may be taxable income to you but are not considered reportable on a Form 1099-MISC from the State of Maine. Contact your tax professional for assistance with tax rules and laws. If you would like to know how much the State of Maine remitted to you under this program, please contact the Office of the State Controller at (207) 626-8411 between 8:00 a.m. and 5:00 p.m. Monday-Friday.
- If you received payments for foster care for adults from Maine Care Services, the amount reported on form 1099 may or may not be taxable, depending on whether you quality for special tax status according to IRS regulations. The State of Maine does not have the necessary detail to make this determination for you. Please consult your tax professional, or visit www.irs.gov (Notice 2014-7) for additional details regarding special tax situations for certain Medicaid income. If you believe the amount reported on the 1099 is inaccurate, please contact Emily Kalafarski at (207) 287-4212 or email her at emily.kalafarski@maine.gov.
- Payments made by the State of Maine for foster care services for children in the custody of DHHS are not reportable. This includes payments such as reimbursement for child care and reimbursement for some transportation costs. These payments should not be reported on a 1099 form. If you believe that there is an error in your 1099 form related to payments you have received for providing foster care to children placed in your home by the Office of Child and Family Services, please contact Daniel Dresser, Department of Health & Human Services, at (207) 624-7931.
- Payments made under Federal Forestry Incentive Programs (Forest Stewardship Assistance Program/WoodsWISE) managed by Maine Forest Service may be taxable income. Contact your tax professional for assistance with tax rules and laws. If you were paid $600 or more by the State of Maine under this program during calendar year 2023, you will receive a 1099 form. If you believe that the 1099 form is inaccurate, please call program coordinator, Andrew Shultz, Maine Forest Service at (207) 287-8430.
If none of the above situations apply to you, and you are unable to determine why you have received a 1099 form from the State of Maine, or if the amount reported does not agree with your records, please contact the Office of the State Controller at (207) 626-8411 between 8:00 a.m. and 5:00 p.m. Monday-Friday. You may leave voicemail at this number or, if you prefer, you can email andrea.m.mckay@maine.gov.
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Account number. May show an account or other unique number the payer assigned to distinguish your account.
Amounts shown may be subject to self-employment (SE) tax. Individuals should see the Instructions for Schedule SE (Form 1040). Corporations, fiduciaries, or partnerships must report the amounts on the appropriate line of their tax returns.
Individuals must report as explained below. Corporations, fiduciaries, or partnerships report the amounts on the proper line of your tax return.
Box 1. Report rents from real estate on Schedule E (Form 1040). If you provided significant services to the tenant, sold real estate as a business, or rented personal property as a business, report on Schedule C (Form 1040). See Pub. 527.
Box 2.Report royalties from oil, gas, or mineral properties, copyrights, and patents on Schedule E (Form 1040). For royalties on timber, coal, iron ore, see Pub. 544, Sales and Other Dispositions of Assets.
Box 3. Generally, report this amount on the "Other Income" line of Schedule 1 (Form 1040) and identify the payment. The amount shown may be payments received as the beneficiary of a deceased employee, prizes, awards, taxable damages, Indian gaming profits, or other taxable income. See Pub. 525, Taxable and Nontaxable Income. If it is trade or business income, report this amount on Schedule C or F (Form 1040).
Box 4. Shows backup withholding or withholding on Indian gaming profits. Generally, a payer must backup withhold if you did not furnish your taxpayer identification number. See Form W-9, Request for Taxpayer Identification Number and Certification, and Pub. 505 for more information. Report this amount on your income tax return as tax withheld.
Box 5. An amount in this box means the fishing boat operator considers you self-employed. Report this amount on Schedule C (Form 1040). See Pub. 334.
Box 6. Report on Schedule C (Form 1040).
Box 7. If checked, consumer products totaling $5,000 or more were sold to you for resale, on a buy-sell, a deposit-commission, or other basis. Generally, report any income from your sale of these products on Schedule C (Form 1040).
Box 8. Shows substitute payments in lieu of dividends or tax-exempt interest received by your broker on your behalf as a result of a loan of your securities. Report on the "Other Income" line of Schedule 1 (Form 1040).
Box 9. Report this amount on Schedule F (Form 1040).
Box 10. Shows gross proceeds paid to an attorney in connection with legal services. Report only the taxable part as income on your return.
Box 11. Shows the amount of cash you received for the sale of fish if you are in the trade or business of catching fish.
Box 12. May show current year deferrals as a non-employee under a non-qualified deferred compensation (NQDC) plan that is subject to the requirements of section 409A plus any earnings on current and prior year deferrals.
Box 13. If the FATCA filing requirement box is checked, the payer is reporting on this Form 1099 to satisfy its account reporting requirement under chapter 4 of the Internal Revenue Code. You may also have a filing requirement. See the instructions for Form 8938.
Box 14. Shows your total compensation of excess golden parachute payments subject to a 20% excise tax. See your tax return instructions for where to report.
Box 15. Shows income as a non-employee under an NQDC plan that does not meet the requirements of section 409A. Any amount included in box 12 that is currently taxable is also included in this box. Report this amount as income on your tax return. This income is also subject to a substantial additional tax to be reported on Form 1040, 1040-SR, or 1040-NR. See the instructions for your tax return.
Boxes 16-18. Shows state or local income tax withheld from the payments.
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You received this form instead of a W-2 because the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax.
If you believe you are an employee and cannot get the payer to correct this form, report the amount shown in box 1 on the line for "Wages, salaries, tips, etc." of Form 1040, 1040-SR or 1040-NR. You must also complete Form 8919 and attach it to your return. For more information, see Pub. 1779, Independent Contractor or Employee.
If you are not an employee, but the amount in box 1 is not self-employment (SE) income (for example, it is income from a sporadic activity or a hobby), report the amount shown in box 1 on the "Other Income" line on Schedule 1 (Form 1040).
Account Number. May show an account or other unique number the payer assigned to distinguish your account.
Box 1. Shows non-employee compensation. If the amount in this box is SE income, report it on Schedule C or F (Form 1040) if a sole proprietor, or on Form 1065 and Schedule K-1 (Form 1065) if a partnership, and the recipient/partner completes Schedule SE (Form 1040).
Note: If you are receiving payments on which no income, social security, and Medicare taxes are withheld, you should make estimated tax payments. See Form 1040-ES (or Form 1040-ES (NR)). Individuals must report these amounts as explained in these box 1 instructions. Corporations, fiduciaries, and partnerships must report these amounts on the appropriate line of their tax returns.
Box 2. If checked, consumer products totaling $5,000 or more were sold to you for resale, on a buy-sell, a deposit-commission, or other basis. Generally, report any income from your sale of these products on Schedule C (Form 1040).
Box 3. Reserved for future use.
Box 4. Shows backup withholding. A payer must backup withhold on certain payments if you did not give your Tax Identification Number to the payer. See Form W-9, Request for Taxpayer Identification Number and Certification, for information on backup withholding. Include this amount on your income tax return as tax withheld.
Box 5-7. State income tax withheld reporting boxes.
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Account Number. May show an account or other unique number the payer has assigned to distinguish your account.
Caution: Identity Theft (IDT). If you suspect that you are a victim of IDT, do not report the incorrect amount shown in box 1 of Form(s) 1099-G on your tax return. Go to www.irs.gov/idtheftunemployment for more information.
Box 1. Shows the total unemployment compensation (UC) paid to you in the calendar year reported. Combine the box 1 amounts from all Forms 1099-G and report the total as income on the UC line of your tax return. Except as explained below, this is your taxable amount. If you made contributions to a governmental UC program or to a governmental paid family leave program and received a payment from that program, the payer must issue a separate Form 1099-G to report this amount to you. If you itemize deductions, you may deduct your contributions on Schedule A (Form 1040) as taxes paid. If you do not itemize, only include in income the amount that is in excess of your contributions.
Box 2. Shows refunds, credits, or offsets of state and local income tax you received. It may be taxable to you if you deducted the state or local income tax paid on Schedule A (Form 1040). Even if you did not receive the amount shown, for example, because (a) it was credited to your state or local estimated tax, (b) it was offset against federal or state debts, (c) it was offset against other offsets, or (d) you made a charitable contribution from your refund, it is still taxable if it was deducted. If you received interest on this amount, you may receive Form 1099-INT for the interest. However, the payer may include interest of less than $600 in the blank box next to box 9 on Form 1099-G. Regardless of whether the interest is reported to you, report it as interest income on your tax return. See your tax return instructions.
Box 3. Identifies the tax year for which the box 2 refunds, credits, offsets shown were made.
Box 4. Shows backup withholding or withholding you requested on unemployment compensation, Commodity Credit Corporation (CCC) loans, or certain crop disaster payments. Generally, a payer must backup withhold on certain payments if you did not give your Tax Identification Number to the payer. See Form W-9 for information on backup withholding. Include this amount on your income tax return as tax withheld.
Box 5. Shows reemployment trade adjustment assistance (RTAA) payments you received. Include on the "Other Income" line of Schedule 1 (Form 1040).
Box 6. Shows taxable grants you received from a federal, state, or local government.
Box 7. Shows your taxable Department of Agriculture payments. If the payer shown is anyone other than the Department of Agriculture, it means the payer has received the payment, as a nominee, that is taxable to you. This may represent the entire agricultural subsidy payment received on your behalf by the nominee, or it may be your pro rata share of the original payment. See Pub. 225 and the Schedule F (Form 1040) instructions for the information about where to report this income. Partnerships, see Form 8825 for how to report.
Box 8. If this box is checked, the amount in box 2 is attributable to an income tax that applies exclusively to income from a trade or business and is not a tax of general application. If taxable, report the amount in box 2 on Schedule C or F (Form 1040), as appropriate.
Box 9. Shows market gain on CCC loans whether repaid using cash or CCC certificates. See the Schedule F (Form 1040) instructions.
Box 10a-11. State income tax withheld reporting boxes.
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