A 1099 form is a collection of tax forms used to report certain types of non-employment income to the Internal Revenue Service (IRS) . There are many types of 1099s, depending on the type of income earned during the tax year. As of 2022, there are 20 varieties of 1099 forms, and some of the most popular ones include:
- 1099-INT: This form is sent to taxpayers if they earned more than $10 worth of interest in the tax year. Typically, banks, brokerage firms, and other investment firms send out a 1099–INT.
- 1099-DIV: This form is used to report dividends and other distributions to taxpayers.
- 1099-NEC: This form reports the income a business pays to taxpayers who are not full-time employees, such as independent contractors, freelancers, self-employed individuals, or sole proprietors.
- 1099-K: This form reports payments and transactions from online platforms, apps, or payment card processors.
Businesses are required to issue a 1099 form to a taxpayer (other than a corporation) who has received at least $600 or more in non-employment income during the tax year. The payer fills out the form with the appropriate details and sends copies to the recipient and the IRS, reporting payments made during the tax year. In some instances, a copy must also be sent to the recipients state.
