what is a 1099 form used for

A 1099 form is a tax document used to report certain types of income to the Internal Revenue Service (IRS) . It is used to report non-employment income to the IRS, and 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. There are many different types of 1099 forms that cover a variety of types of income, such as non-employee work, interest earned from a bank or other financial institution, dividends, rents, royalties, gains and losses in brokerage accounts, and more. The payer fills out the 1099 form with the appropriate details and sends copies to the recipient and the IRS, reporting payments made during the tax year. If you receive a 1099 form, it doesnt necessarily mean you owe taxes on that income, but you will have to report it to the IRS on your tax return.