U.S. · Tax forms
1099-MISC box 10, gross proceeds paid to an attorney.
The $600 line, and how it differs from attorney fees on the 1099-NEC.
Box 10 of Form 1099-MISC reports gross proceeds of $600 or more paid to an attorney in connection with legal services, such as a settlement payment, regardless of whether the legal services were performed for the payer. It is not the attorney’s own fee: fees of $2,000 or more for the attorney’s services go in box 1a of Form 1099-NEC.
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The three tests in the instructions
Under section 6045(f), report in box 10 payments that (1) are made to an attorney in the course of your trade or business in connection with legal services, but not for the attorney’s services, for example in a settlement agreement; (2) total $600 or more; and (3) are not reportable by you in box 1a of Form 1099-NEC. The term attorney includes a law firm or other provider of legal services.
Box 10 versus Form 1099-NEC box 1a
| Payment | Form and box | Line |
|---|---|---|
| Fees for the attorney’s own legal services | Form 1099-NEC, box 1a | $2,000 or more |
| Gross proceeds, such as a settlement payment, paid to the attorney | Form 1099-MISC, box 10 | $600 or more |
The NEC instructions say gross proceeds are not reportable in box 1a and send you back to the 1099-MISC box 10 instructions.
Corporations and TINs
The exemption from reporting payments to corporations does not apply to payments for legal services, so a law firm that is a corporation still gets a form. To report you need the attorney’s taxpayer identification number, which you may collect on Form W-9. The attorney must supply it promptly but is not required to certify it. If it is not supplied you must backup withhold on the reportable payments, and box 4 lists box 10 among the boxes subject to backup withholding.
The claimant’s attorney fees
Generally you are not required to report the claimant’s attorney’s fees. The instructions give this example: an insurance company pays a claimant’s attorney $100,000 to settle a claim and reports $100,000 of gross proceeds in box 10. It has no reporting requirement for the claimant’s attorney’s fees subsequently paid out of those funds. The rules apply whether or not the legal services are provided to the payer, whether or not the attorney is the exclusive payee (for example, the attorney’s and claimant’s names are on one check), and whether or not another return is required for part of the payment.
Worked example: two forms for one payment
Under the instructions’ own example, a business that pays $2,000 of taxable damages to a claimant by paying that amount to the claimant’s attorney must furnish two forms: a Form 1099-MISC to the claimant reporting the damages under section 6041, generally in box 3, and a Form 1099-MISC to the claimant’s attorney reporting gross proceeds under section 6045(f) in box 10.
Related decoders
More 1099 box pages: 1099-MISC box 8, substitute payments, 1099-K box 1a, gross amount of payments, 1099-K box 1b, card-not-present transactions, 1099-NEC box 1, nonemployee compensation, 1099-MISC box 14 and excess golden parachute payments. For the 1099-R box 7 codes see the 1099-R distribution codes lookup.
Sources
- Instructions for Forms 1099-MISC and 1099-NEC (12/2026): the box-by-box section for this form. Read November 2, 2026. The IRS page was last reviewed July 1, 2026 and labels the instructions 12/2026.
Edition read: Instructions for Forms 1099-MISC and 1099-NEC (12/2026). The instructions say the $2,000 minimum threshold applies for tax years beginning after 2025 and may be adjusted for inflation beginning in calendar year 2027; check which year your own form covers. This page summarizes the instructions and does not replace them.
Frequently asked questions
What is box 10 on a 1099-MISC?
Box 10 reports gross proceeds of $600 or more paid to an attorney in connection with legal services, regardless of whether the services are performed for the payer.
Is box 10 the attorney’s fee?
No. Attorney fees for the attorney’s own services of $2,000 or more are reported in box 1a of Form 1099-NEC. Box 10 covers payments that are not for the attorney’s services, such as settlement payments.
Do I report to an attorney who is a corporation?
Yes. The instructions say the corporate exemption does not apply to payments for legal services, so you report attorney fees in 1099-NEC box 1a or gross proceeds in 1099-MISC box 10 to corporations that provide legal services.
Do I also report the claimant’s attorney fees paid from a settlement?
Generally no. The instructions say you are not required to report the claimant’s attorney’s fees that are subsequently paid from the funds you reported as gross proceeds.
What if the attorney will not give me a TIN?
The instructions say you must backup withhold on the reportable payments, and the attorney may be subject to a penalty under section 6723. Box 4 is where the withholding is reported.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. The payer, a CPA or an enrolled agent can confirm what a box means for your return. Everything runs in your browser; nothing you enter is sent anywhere.