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A 1099 tax form documents payments made by sources other than employers. It’s also an information return small businesses and self-employed individuals are required to file for payments they may make to others.
There are multiple types of 1099 forms that report different types of income.
Here’s a quick guide to understanding why you may have been sent a 1099, the different types, and how to file it.
Types of 1099 forms
The many types of 1099 forms are used for the different sources of income you may have received throughout the year—or, in the case of a 1099-NEC, that you may have made to an independent contractor. This is a comprehensive list of 1099 forms used to report income to the IRS.
| Form | Name | Description |
|---|---|---|
Form 1099-A | Acquisition or Abandonment of Secured Property | If a mortgage lender canceled some of your debt, such as in a short sale or foreclosure, you may receive a 1099-A. |
Form 1099-B | Proceeds from Broker and Barter Exchange Transactions | If you received money from the sale of stocks, bonds, or other securities through a broker during the year, you may receive a 1099-B. |
Form 1099-C | Cancellation of Debt | When a lender cancels part of your debt, it may be taxable and you may receive a 1099-C. |
Form 1099-CAP | Changes in Corporate Control and Capital Structure | If you’re a shareholder of a corporation that changed and issued cash, stock, or other payment, you may receive a 1099-CAP. |
Form 1099-DIV | Dividends and Distributions | Dividends received in the tax year. |
Form 1099-G | Certain Government Payments | A tax refund or other payment from the government. |
Form 1099-H | Health Coverage Tax Credit (HCTC) Advance Payments | Advance payments for health insurance from specific government programs; you may have received a 1099-H from years 2002-2021. |
Form 1099-INT | Interest Income | If you received more than $10 in interest, you may receive a 1099-INT. |
Form 1099-K | Payment Card and Third-Party Network Transactions | When you receive more than $600 from any one party on a payment network like Paypal, Venmo, or Cash App. |
Form 1099-LS | Reportable Life Insurance Sale | Proceeds from the sale of a life insurance policy. |
Form 1099-LTC | Long-Term Care and Accelerated Death Benefits | If you received payment for long-term care benefits from insurance companies, you may get a 1099-LTC. |
Form 1099-MISC | Miscellaneous Income | If you received at least $600 in: Rents, Prizes and awards, Other income payments, Medical and health care payments, Crop insurance proceeds,Cash payments for fish (or other aquatic life) you purchased from anyone engaged in the trade or business of catching fish. Generally, the cash paid from a notional principal contract to an individual, partnership, or estate. Payments to an attorney and any fishing boat proceed. |
Form 1099-NEC | Nonemployee Compensation | Payments of at least $600 received as a contractor, freelancer, or self-employed individual or that your business made to such an individual or to an attorney. |
Form 1099-OID | Original Issue Discount | Interest paid when bonds are issued at a price lower than what they can be redeemed for. |
Form 1099-PATR | Taxable Distributions Received from Cooperatives | Money or dividends received from a co-op or farm. |
Form 1099-Q | Payments from Qualified Education Programs (Under Section 529 and 530) | If you received a payment from a qualified education program, such as a 529 distribution. |
Form 1099-QA | Distributions from ABLE Accounts | Money received from an ABLE account for people with disabilities. |
Form 1099-R | Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. | Money received from a profit-sharing or retirement plan, pensions, survivor benefits, disability or life insurance payments, and charitable gift annuities. |
Form 1099-S | Proceeds from Real Estate Transactions | Proceeds from the sale or exchange of real estate. |
Form 1099-SA | Distributions from an HSA, Archer MSA, or Medicare Advantage MSA | Money disbursed from a type of medical savings account. |
Form 1099-SB | Seller's Investment in Life Insurance Contract | Report of the value a seller received in a life insurance contract. |
Who gets a 1099 form?
People who earn money from a source other than regular employment will receive a 1099 form. And this year, anyone who received over $600 on a peer-to-peer payment network like Venmo, Paypal, or Cash App will receive a 1099-K.
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Some examples of when you’ll receive a 1099 include:
- 1099-NEC: You received payment as an independent contractor.
- 1099-K: You’re a reseller on Facebook Marketplace and received a 1099-K from Venmo.
- 1099-INT: You earned interest from a high-yield savings account.
- 1099-G: You received a tax refund from the government.
Where can I get a 1099 form?
The individual or business from which you received the money will file the 1099 with the IRS. They will send a copy to you in the mail by the deadline.
If you’re the one that needs to file a 1099, such as a 1099-NEC, you can find the forms on the IRS website, your account, or from an integrated tax and bookkeeping software program, like Found or Lili.
Do I need a 1099 form to file my taxes?
It’s the taxpayer’s responsibility to report any income earned, whether it’s reported on a Form 1099 or not. If you do not receive a 1099, you can use your own records to report the income.
When should I receive my 1099?
You’ll receive your 1099 as soon as your payer sends it to you. The payer is working with deadlines set by the IRS. Deadlines for the most common 1099 forms include:
- 1099-NEC: Jan. 31 for both paper and electronic filers.
- All other 1099s: Feb. 28 for paper filers and March 31 for electronic filers.
TIME Stamped: A 1099 impacts the way you file taxes
A 1099 is a way to record and report money received from a source other than your employer. If one comes your way, it’s filed differently than income earned from a wage.
If the income received is subject to self-employment taxes, you may find paying them for the first time a shock. To be prepared for the increase in taxes you’ll need to pay, you may want to consider more robust bookkeeping systems.
There are many types of 1099s that are treated differently when you file your taxes. If you still need some direction, you may want to consider hiring a tax professional.
Frequently asked questions (FAQs)
What does a 1099 employee mean?
Your employer doesn’t classify you as an employee if you’re receiving a 1099. You’re classified as an independent contractor, which is defined by the IRS as a business where the payer can control the outcome of the work, but not how it is done. The Department of Labor (DOL) also notes that classification of a worker depends on whether a person is economically dependent on an employer or if they are in business for themselves.
Classification of an employee is important. As an employee, you have wage and overtime protection. You pay taxes on your income, and your employer also pays taxes on your income. When you’re classified as a 1099 contractor, you pay both employer and employee taxes on your income, which typically creates a much higher tax burden for you.
There are many laws regarding proper classification of an employee. Improper classification of an employee is a violation of the Fair Labor Standards Act (FLSA) and can be reported to the Department of Labor.
Where do I report the information on a 1099 form?
Where you report the 1099 information on your Form 1040 will depend on the type of 1099 you received. Some 1099s can be quite complex, so you may want to take a look at the detailed instructions for the type you receive or consider hiring a tax professional. In some instances, there may be multiple places where it may be appropriate to report.
Can I ignore the 1099 form?
There are certain instances where a 1099 isn’t required to be reported on your tax return. For example, if you received a tax refund in the previous year and were sent a 1099-G, you don’t need to report it if you take the standard deduction. But if you itemize deductions, you do need to report the payment on your income tax return.
Take a look at the tax form instructions for the 1099 you received to see if it may not need to be filed. However, if you do not report income from a 1099, you’ll likely receive a bill from the IRS.
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