- Form 1099 is a tax document used to report certain types of income to the IRS.
- One copy is filed with the IRS and one copy is sent to the taxpayer.
- You're liable for paying taxes on all of your income, regardless of whether you receive a 1099 form.
If you collected any sort of income this year, you'll start receiving income tax forms in January. The most common form is a W-2, which reports wages and other compensation earned through traditional employment.
But you may also receive a 1099 if you've collected money from other sources, such as interest from your bank, dividends from an investment, fees for consulting or contract work, or a distribution from a retirement account.
Here's a look at what 1099 forms are, when you can expect to receive them, and why they are important when you file your taxes.
Who receives a 1099?
A 1099 is a form that reports various types of income. It's filed by a business or organization that paid money to a recipient, which could be an individual or another business.
Its purpose is to let the government know how much money was paid and to whom so the recipient can pay the appropriate taxes. It also reports how much of the income was withheld for federal and/or state taxes, if any.
One copy of a 1099 is filed with the IRS and another is sent to the recipient of the money. The recipient then uses that form to report their income to the IRS when they file their tax returns.
For example, suppose you sold 100 shares of stock and earned $1,000 in profit from the sale. The brokerage that handled the transaction would file a 1099-B form with the IRS to report the sale and money you collected. It would also send you a copy of the form with all the information it sent to the IRS so you can report the $1,000 as taxable income.
$0 for Free Edition (~37% of filers qualify. Form 1040 and no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest), $39 to $69 for Deluxe, $89 to $129 for Premium
- Can be good for relatively complex tax situations that may require help navigating deductions and forms
- Offers step-by-step guidance
- Ability to upgrade for instant access to an expert
- Not all users will qualify for a $0 filing option
- Most expensive option for many tax situations
- No brick-and-mortar locations to meet with a tax pro
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- Snap a photo of your W-2 or 1099-NEC and TurboTax will put your info in the right places.
- CompleteCheck™ scans your return so you can be confident it’s 100% accurate.
- You won’t pay for TurboTax until it’s time to file and you’re fully satisfied.
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Common types of 1099 forms
A 1099 simply reports income to the government. Because there are so many types of income and ways it is taxed, the IRS offers several 1099 forms for specific purposes, each with its own filing requirements.
Here is a quick look at the most common types of 1099 forms and the minimum income required for each to be filed.
Form | Type of income | Minimum needed to report |
1099-DIV | Dividends | $10 |
1099-INT | Interest | $10 to $600, depending on circumstance |
1099-MISC | Royalties, broker payments, prizes, rents, etc. | $10 to $600, depending on circumstance |
1099-NEC | Non-employee payments | $600 |
1099-G | Certain types of government payments | No minimum |
1099-R | Retirement income | $10 |
1099-B | Broker or barter exchanges | No minimum |
1099-S | Real estate transactions | No minimum |
1099-K | Payment card and third-party network transactions | $600 in aggregate payments. |
When will you receive a 1099?
Organizations have to file their 1099s by January 31 for the previous tax year, which means taxpayers should receive their copy in early February.
The form can be delivered electronically or by regular mail. In addition to checking your mailbox at home, you should keep an eye on your email.
If you know you received 1099 income and you haven't gotten a 1099 form by mid-February, contact the paying organization to check on the form's status.
"The taxpayer is required to report the income whether or not they receive a 1099 form," says Beth Logan, an enrolled agent with Kozlog Tax Advisers. "The 1099 form just tells the IRS that the income should appear on the recipient's tax return."
Quick tip: If you don't get a 1099 for income you received, you still have to report it on your tax return. Don't rely just on what 1099s you actually get when calculating income for tax purposes.
$0 for Free Edition (~37% of filers qualify. Form 1040 and no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest), $39 to $69 for Deluxe, $89 to $129 for Premium
- Can be good for relatively complex tax situations that may require help navigating deductions and forms
- Offers step-by-step guidance
- Ability to upgrade for instant access to an expert
- Not all users will qualify for a $0 filing option
- Most expensive option for many tax situations
- No brick-and-mortar locations to meet with a tax pro
TurboTax is among the most expensive options for filing taxes online, but offers a high-quality user interface and access to experts. It's especially valuable for self-employed filers who use QuickBooks integration.
TurboTax Tax Software- Tell TurboTax about your life and it will guide you step by step. Jumpstart your taxes with last year’s info.
- Snap a photo of your W-2 or 1099-NEC and TurboTax will put your info in the right places.
- CompleteCheck™ scans your return so you can be confident it’s 100% accurate.
- You won’t pay for TurboTax until it’s time to file and you’re fully satisfied.
- TurboTax is committed to getting you your maximum refund, guaranteed.
How to report 1099 income on your tax return
Income documented on a 1099 should be reported on the front page of your tax return, Form 1040. Some types of 1099 income may require completing and attaching additional forms, known as schedules. For example, if you received over $1,500 of taxable interest or ordinary dividends, use Schedule B.
It's important that you keep a record of all your income so you can match it up with what is reported on the 1099s you receive. This can help protect you against errors a payer may make in a 1099 that could result in increased tax liability.
"Taxpayers should keep their own record of income received, as the receipt of a 1099 is not proof of the receipt of income," says Steven J. Weil, president and tax manager of RMS Accounting in Fort Lauderdale, Florida.
"If a taxpayer has records to prove that the 1099 information is incorrect, the IRS will have to review and accept that income. But in the absence of taxpayer records to the contrary, income reported on a 1099 will generally stand."
FAQs about 1099 forms
If you don't receive a 1099, first contact the company to request the missing form. If you can't get in touch with them or otherwise don't receive the form by the end of February, call the IRS at 800-829-1040. They will contact the payee and request the missing form.
If the information on your 1099 is incorrect, contact the company to request a corrected form. If they aren't responsive, contact the IRS at 800-829-1040. You will likely need to estimate your income to file your return on time.
If you have over $400 in self-employment income, you need to file an annual tax return. You should also consider filing, even if you don't meet the income thresholds but you received 1099-B Proceeds From Broker and Barter Exchange Transactions.
