1099 Information

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 assitance with tax rules and laws.


Instructions to Recipients


Below are common reasons a 1099 may have been issued:

  1. 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.

  2. 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.

  3. 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 Debora Gellatly at (207) 287-4212 or email her at debora.gellatly@maine.gov.

  4. Payments made by the State of Maine for foster care services for children in the custoday 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 feel 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 Donna Pottle, Department of Health & Human Services, at (207) 624-7979.

  5. Payments made under Federal Forestry Cost Share Programs (Forest Stewardship Assistance Program/WoodsWISE) managed by Maine Forest Service are 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 2017, you will receive a 1099 form.  If you feel 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.


Instructions to Recipients of 1099s

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. If your net income from self-employment is $400 or more, you must file a return and compute your SE tax on Schedule SE (Form 1040). See Pub. 334 , Tax Guide for Small Business, for more information, if no income or social security and Medicare taxes were withheld and you are still receiving these payments, see Form 1040-ES, Estimated Tax for individuals, or Form 1040-ES(NR)).

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 Form 1040 (or Form 1040NR) 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. Shows nonemployee compensation. If you are in the trade or business of catching fish, box 7 may show cash you received for the sale of fish. If the amount in this box is SE income, report this amount on Schedule C or F (Form 1040), and complete Schedule SE (Form 1040). You received this form instead of Form W-2 because the payer did not consider you an employee and did not withhold income tax or social security and Medicare taxes. Contact the payer if you believe this form is incorrect or has been issued in error. If you believe you are an employee, report this amount on line 7 of Form 1040 (or Form 1040NR, line 8) and call the IRS for information on how to report any social security and Medicare taxes.

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 Form 1040 (or Form 1040NR).

Box 9. If checked, $5,000 or more of sales of consumer products was paid by you on a buy-sell, deposit-commission, or other basis. A dollar amount does not have to be shown. Generally, report any income from your sale of these products on Schedule C (Form 1040).

Box 10. Report this amount on Schedule F (Form 1040).

Box 13. Shows your total compensation of excess golden parachute payments subject to a 20% excise tax. See the Form 1040 (or Form 1040NR) instructions for where to report.

Box 14. Shows the gross proceeds paid to an attorney in connection with legal services. Report only the taxable part as income on your return.

Box 15a. May show current year deferrals as a nonemployee under a nonqualified deferred compensation (NQDC) plan that is subject to the requirements of section 409A. Any earnings on current and prior year deferrals are also reported.

Box 15b. Shows income as a nonemployee under a NQDC plan that does not meet the requirements of section 409A. This amount is also included in box 7 as nonemployee compensation. Any amount included in box 15a that is currently taxable is also included in this box. This income is also subject to a substantial additional tax to be reported on Form 1040 (or Form 1040NR). See "Total Tax" in the Form 1040 (or Form 1040NR) instructions.

Boxes 16-18. Shows state or local income tax withheld from the payments.