A 1099 form is a series of documents used in the United States to prepare and file an information return to report various types of income other than wages, salaries, and tips. The form is used to report payments to independent contractors, rental property income, income from interest and dividends, sales proceeds, and other miscellaneous income. There are many different versions of the Form 1099 depending on the type of income you need to report when you file your return. Some common types of 1099 forms include:
- 1099-MISC: This form is used to report payments made to independent contractors or freelancers.
- 1099-INT: This form is used to report interest income from a bank or other financial institution.
- 1099-DIV: This form is used to report dividend income.
- 1099-B: This form is used to report income from the sale of stocks, mutual funds, ETFs, and other types of financial transactions.
The IRS requires businesses 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. Taxpayers use the information provided on the 1099 forms to help them complete their own tax returns. If you receive a 1099 form, you should keep it because it can have a big impact on your tax life.
