1099 forms are a series of documents that the Internal Revenue Service (IRS) refers to as “information returns.” There are a variety of 1099 forms that report various types of payments you may receive during the year, in addition to what a business may have paid you.
What is the IRS Form 1099?
IRS Form 1099 is a collection of tax forms that document different types of payments made by an individual or business that is typically not your employer. The payer fills out a form with the necessary details and sends a copy to the IRS, reporting payments made during the year. In some cases, a copy must be sent to your state tax agency. The payer is responsible for completing the appropriate 1099 form and submitting it to you. Such payments can be for rental income, self-employment or independent contractor income, a tax refund received from your state or locality, gambling winnings, and others. Most 1099s must be filed on or before January 31, but in some cases, the date is February 15.
Examples of when you can receive a Form 1099
Some common examples of when you may receive a Form 1099:
If you received $600 or more as a non-employee from a person or business that is typically not your employer, you should receive a Form 1099-NEC
If you received $600 or more in royalty payments, you should receive a Form 1099-MISC
If you received a state or local tax refund during the previous year, you can expect to receive a Form 1099-G
Similarly, if you pay a self-employed person, independent contractor, or other non-employee $600 or more during the year related to your trade or business, you must send them a Form 1099-NEC.
Key points
IRS Form 1099 is a collection of tax forms that document different types of payments made by an individual or business that is typically not your employer.
There are a variety of types of income reported on Form 1099, including royalties, and contractor income, but also payments such as gambling winnings, rents, gains and losses from brokerage or investment accounts, dividends, interest income, and more.
If you worked as an independent contractor or self-employed, you will often have income reported on a Form 1099
You must receive most of your Form 1099 on or before January 31 of each year to report the payments you received the previous tax year.
Who submits Forms 1099?
Several types of 1099 Forms exist to document payments made between an individual or business and another party or participant. Since Form 1099 reports income, many people may receive multiple Form 1099s for different reasons. For example, if you are a contractor or self-employed person, you may receive a Form 1099-NEC documenting payments made to you throughout the year by a private payer.
– Tip: The form must include these payments if they are $600 or more, the threshold amount that requires a payer to submit a Form 1099-NEC.
Payments under $600 do not require you to submit 1099, although the payer may choose to submit one.
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