What Is a 1099 Form?

A 1099 form is a tax document for reporting income received from sources other than your employer. The Internal Revenue Service (IRS) considers 1099 forms “information returns,” which tell the government your total benefits or earnings. Most 1099 forms are due to recipients by January 31 of the following year.

If you file by paper, the IRS must get them by February 28 and March 31 for e-filing with tax software. If the date falls on a weekend, the due date is the next business day. We recommend checking the latest IRS instructions for specific due dates.

Anyone can get a 1099 form. Freelancers such as accountants, lawyers and subcontractors in independent trades or professions who fill out a W-9 form at the beginning of a business relationship will receive a 1099-NEC form from their clients. If you serve multiple businesses, prepare to receive a 1099 form from each of them.

While those providing services to individuals other than a business do not need to file a 1099-NEC form, note that they still need to report their income when filing self-employed tax returns. You’ll also receive 1099 forms for other types of incomes, including investment transactions, real estate transactions, barter exchange and retirement distributions.

There are several types of 1099 tax forms. We’ll explore 1099-MISC and 1099-NEC, the most common 1099 forms for independent contractors, and other 1099 forms you’ll likely encounter.

1099-MISC: Miscellaneous Information

You’re required to file 1099-MISC (miscellaneous) to report payments received that don’t fall under nonemployee compensation. Such income includes rent, awards and crop insurance proceeds. If they amount to more than $600 in proceeds or $10 in royalties in the past year, you must file the forms to the IRS by February 28 or March 31 if you’re filing electronically. Also, anyone other than a retail establishment reselling a product worth $5,000 or above is required to file the 1099-MISC form.

1099-NEC: Nonemployee Compensation

Form 1099-NEC (nonemployee compensation) is for sole proprietors or limited liability companies (LLCs) that receive payments for their services. You’ll receive the form from clients by January 31 and report all income earned in the past year. The form is due to the IRS by February 1 and applies to every self-employed entity, independent contractor or gig worker who’s not treated as an employee.

1099-A: Acquisition or Abandonment of Secured Property

If your property was foreclosed and the lender canceled some or all of your mortgage in the last tax year, you’ll most likely receive Form 1099-A. It doesn’t matter that the lender does not run a loan business.

1099-B: Proceeds from Broker and Barter Exchange Transactions

Form 1099-B is for filing income from the sale of stocks, bonds, derivations and any other security during the past year. Also, use this form to report property or service exchanged by barter.

1099-C: Cancellation of Debt

Also, if a lender forgives part of your debt or the entire amount, expect Form 1099-C for canceled debt since the IRS considers it income. An example of such taxable income is a credit card charge-off.

1099-CAP: Changes in Corporate Control and Capital Structure

Form 1099-CAP is for reporting changes in corporate control and capital structure. So, if you received cash, stock or any other property due to the change, the IRS requires that you file this form.

1099-DIV: Dividends and Distributions

The 1099-DIV form reports dividends received from investments other than interests on credit union accounts.

1099-G: Certain Government Payments

You’ll get a 1099-G form if you received money from the government in the past year. Examples of income reported on this form are unemployment compensation, local or state income tax refunds, taxable grants and agricultural payments.

1099-H: Health Coverage Tax Credit (HCTC) Advance Payments

The IRS requires providers of qualified health insurance coverage to document advanced payments received to offset specified health insurance expenses using Form 1099-H. They include trade adjustment assistance (TAA), Reemployment TAA and Pension Benefit Guaranty Corporation (PBGC) pension for recipients and eligible family members.

1099-INT: Interest Income

The IRS requires filing Form 1099-INT for interests of $10 or more received from financial institutions such as banks, credit unions and building and loan associations. Also, report interest on bank deposits, delayed death benefits, state or federal income tax refunds and indebtedness such as debentures and bonds not from the U.S. Treasury.

1099-K: Card and Third-Party Network Transactions

Form 1099-K reports income received for goods or services via third-party payment processing systems such as Cash App and Venmo. The IRS had planned on reducing the threshold for 2023 to $600 but announced a delay on November 21, 2023. Hence, if you received up to $20,000 and had more than 200 transactions during the 2023 tax year, you must report it. However, note that you should not report personal payments from friends and family.

1099-LTC: Long-Term Care and Accelerated Death Benefits

Beneficiaries of long-term care insurance payouts and accelerated death benefits under life insurance contracts will receive Form 1099-LTC to report payments from insurance companies, government units or viatical settlement providers.

1099-LS: Reportable Life Insurance Sale

File Form 1099-LS if you acquired a life insurance contract or interest from one in the past year. A few exceptions to reporting such income include where the contract was transferred to you gratuitously or a third party reports it on your behalf. You’ll find more exceptions in the instructions for filing the 1099-LS form.

1099-OID: Original Issue Discount

You’ll most likely receive Form 1099-OID if you purchased bonds or another financial instrument at a discounted rate. The IRS requires you to pay taxes on the discounted portion, if up to $10, until you redeem the bond or it matures. You’ll also need to report foreign taxes withheld and paid for, and federal income taxes withheld and not refunded in the past year, even if the original issue discount is below $10.

1099-PATR: Taxable Distributions Received From Cooperatives

If you belong to a cooperative and received $10 or more in patronage dividends or had federal income tax withheld from you, expect to receive Form 1099-PATR before the tax season ends.

1099-Q: Payments From Qualified Education Programs

While most 529 plans are tax-exempt, you have to file the 1099-Q form to report distributions received from a qualified tuition program (QTP) or Coverdell education savings accounts (ESAs) in the past year.

1099-QA: Distributions From ABLE Accounts

While the Achieving a Better Life Experience (ABLE) Act exempts tax payments on distributions received for settling disability-related expenses, you’re expected to document the amounts received. Even if the distributions were terminated, established institutions will send you Form 1099-QA.

1099-R: Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

You’ll receive the 1099-R form if you received distributions from retirement plans, individual retirement accounts (IRAs), profit-sharing programs, insurance contracts, survivor income benefit plans, permanent and total disability payments under life insurance contracts, charitable gift annuities and others. Even if such payments are tax-exempt, you still need to report the income once it is $10 or more.

1099-S: Proceeds from Real Estate Transactions

Typically, the IRS requires that you use Form 1099-S to report income from the sale or exchange of real estate, such as land, permanent structures, condominium units and even stocks in a cooperative housing corporation. It doesn’t matter whether or not the transaction is taxable. You’ll find more details in the instructions and exceptions for Form 1099-S.

1099-SA: Distributions From an HSA, Archer MSA or Medicare Advantage MSA

Whether paid directly to a medical service provider or an account holder, you’re required to use Form 1099-SA to file returns on distributions made from a health savings account (HSA), Archer Medical Savings Account (Archer MSA) or Medicare Advantage Medical Savings Account (MA MSA).

1099-SB: Seller’s Investment in Life Insurance Contract

Anyone who transfers life insurance to someone else must file Form 1099-SB to report the sale of the said life insurance policy.

1099-SSA: Social Security Benefits

The IRS requires you to report amounts received as Social Security benefits, including monthly retirement and Old-Age, Survivors and Disability Insurance (OASDI) benefits.

Since companies, institutions and individuals don’t withhold taxes on payments made to independent contractors or beneficiaries, the IRS uses 1099 forms to track taxpayer income. Use relevant 1099 forms to report non-salary income to the IRS so the government agency knows what to expect from you. Even if specific incomes are not taxable, ensure you send over the information and keep your tax records.