Reporting software subscriptions and SaaS
January 19, 2021
Q. Are software subscriptions reportable on Form 1099-MISC, Box 2 - Royalties? Is software as a service reportable?
(Answered by a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory compliance for Forms W-9, W-8, W-2, 1099, 1098, 5498, 945, 1042, 1042-S, and state reporting.)
A subscription for use of software isn't a royalty payment, so it's not reported in box 2 of the Form 1099-MISC. Royalty payments for software are rare, unless your…
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