What Is an IRS 1099 Form?
Independent contractors and others who receive income from sources other than an employer can expect to receive a 1099 instead of a W-2. So, what is a 1099, and how do you use it to file your taxes? Here's everything you need to know about Form 1099, including who it's for, when you should receive it, and how that information impacts your return.
Key Takeaways
- Form 1099 is a collection of forms used to report payments that typically aren't from an employer.
- 1099 forms can report different types of incomes. These can include payments to independent contractors, gambling winnings, rents, royalties, and more.
- If you work as an independent contractor or freelancer, you'll likely have income reported on a 1099 form.
- You should receive most of your 1099 forms by January 31 each year to report the preceding year’s payments to you.
What is a 1099 Form?
The IRS 1099 Forms are a group of tax forms that document payments made by an individual or a business that typically isn’t your employer. Many small businesses need to send 1099s when they make certain payments. Copies of these forms get sent to the payee and to the IRS. The form reports payments made during the tax year. In some instances, a copy is also sent to your state taxing authority. The payer is responsible for filling out the appropriate 1099 tax form and sending it to you. The IRS requires payers to provide most 1099 forms by January 31. In certain instances, the date is February 15.
What is a 1099 Form used for?
A 1099 Form documents payments from someone that typically isn’t your employer. This can be an individual, business, or entity, such as the government. There are different 1099 forms that report various types of income and how they were earned. These payments might be for interest, dividends, nonemployee compensation, retirement plan distributions.
If you receive a 1099 form, it’s your responsibility to report the income earned on your tax return.
Who receives a 1099 Form?
Some common examples when you might receive a 1099 include:
- You should receive a Form 1099-NEC if you earned $600 or more in nonemployee compensation from a person or business who isn’t typically your employer.
- You should receive Form 1099-MISC if you earned $600 or more in rent or royalty payments.
- You should receive Form 1099-G if you received a state or local tax refund during the previous year.
Likewise, if you paid a freelancer, independent contractor or other nonemployee $600 or more during the year related to your trade or business, you likely should send them a Form 1099-NEC.
Who sends 1099 forms?
Several types of 1099 forms exist to document payments made between individuals or businesses and another party. You can receive various 1099 forms for different reasons.
One of the most popular 1099 forms is the 1099-NEC for Nonemployee Compensation payments. If you’re an independent contractor or freelancer, you may receive a Form 1099-NEC documenting payments made to you throughout the year from a particular payer.
Payers who make Nonemployee Compensation payments below $600 are typically not required to file the 1099-NEC unless the payer withholds any amount of tax from the payments. However, they may do so if they wish. If you received less than $600 from a payer, you are still required to report the income on your tax return.
TurboTax Tip:
The 1099-NEC form should include payments made to you if they are $600 or more from a single source or if any federal tax was withheld. That is the threshold requiring a payer to file a Form 1099-NEC.
When are 1099s issued?
There are different due dates for different types of 1099 forms. For example, Form 1099-NEC is due by January 31st. If January 31st isn't a business day, then the due date moves to the next business day.
If you’re the one sending 1099 forms:
- Most 1099 forms are due to the recipient by January 31.
- If you’re mailing a paper form to the IRS, you typically have to send the 1099 by February 28 (postmarked by that date).
- If you're using tax software like TurboTax to send the forms to the IRS, we'll import the information for the form for you.
- Forms 1099-NEC are due to recipients and to the IRS by January 31 regardless of whether they are electronically or paper filed.
Payers are required to send you these forms early in the tax season. This gives you time to prepare your tax return. It also allows the IRS to have evidence of certain income you received during the tax year.
Despite the early due dates for sending these forms as a payer, you won’t need to file your own income tax return until the tax filing deadline.
The early due dates allow the IRS to verify income that individuals report on their tax returns. This helps the IRS detect refund fraud more easily.
See more on the types of 1099 forms below.
What are some of the most common types of 1099 Forms?
Two of the most common types of 1099 forms are 1099-NEC and 1099-MISC. Explore the information about each type of 1099 form below:
| Form Name | What It's For | Example | Filing Due Date |
| 1099-NEC: Nonemployee Compensation | Reports nonemployee compensation such as income earned as an independent contractor, freelancer, or self-employed individual. | Worked as a rideshare driver, food delivery person, freelance writer, or other gig worker. |
Due Date to Recipient: January 31 Due Date to IRS: January 31 |
| 1099-MISC: Miscellaneous Information | For payments like rent, royalties, prizes and awards. Also used for substitute payments in lieu of dividends, medical and health care payments, crop insurance proceeds, and other items. | Received rent payments for property you lease. |
Due Date to Recipient: February 1 (or February 16 if substitute dividends and tax-exempt interest payments reportable by brokers or gross proceeds paid to attorneys) Due Date to IRS: February 28 (or March 31 if filed electronically) |
What’s the difference between the 1099-NEC vs. 1099-MISC?
What is the difference between the 1099-NEC and 1099-MISC forms? Before tax year 2020, business owners primarily used Form-1099 MISC to report nonemployee compensation. Starting in 2020, the IRS reintroduced the 1099-NEC Form to report nonemployee compensation. This change was made to provide a separate filing deadline for nonemployee compensation. Payments that use Form 1099-MISC have different deadlines.
Nonemployee compensation can include any payment for any services performed by a person who is not an employee. These individuals are commonly known as freelancers or independent contractors. Nonemployees are individuals that are not employees who are used by a business to do work. They can typically control or direct the outcome of the work but not what will be done or how the work will be done. Contract workers are also typically required to pay self-employment taxes.
In contrast, as an employee, your compensation is usually reported on a Form W-2.
Now, Form 1099-NEC reports nonemployee compensation. The 1099-MISC still exists to report other types of miscellaneous income.
What are the other types of 1099 Forms?
There are several types of 1099 forms, each designed for specific financial transactions and reporting requirements. Each form serves a specific purpose and has a specific due date.
| Form Name | What It’s For | Example | Filing Due Date |
| 1099-A: Acquisition or Abandonment of Secured Property | You may receive this form from your mortgage lender if it canceled some or all your mortgage as part of a property foreclosure. You may also receive it if you forfeited ownership of your property or had your property sold in a short sale. | Your lender foreclosed on your house, canceling your mortgage. |
Due Date to Recipient (Borrower): January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. |
| 1099-B: Proceeds from Broker and Barter Exchange Transactions | Reports sales of stocks, bonds, derivatives or other securities. These sales may be made through one or several brokers throughout the tax year. | You sold stocks in a brokerage account. |
Due Date to Recipient: February 15 (March 15 for reporting by trustees and middlemen of widely held fixed investment trusts (WHFITs)) Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software |
| 1099-C: Cancellation of Debt | For entering into an agreement with a lender to negotiate a debt cancellation with them. | Entered into an agreement with your lender to cancel all or part of your mortgage. |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. |
| 1099-DIV: Dividends and Distributions | For receipt of dividends and/or certain distributions typically from investments | Dividends from stocks. |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if filed online with tax software. |
| 1099-G: Certain Government Payments | For reporting unemployment compensation. Also used to report any state or local income tax refunds during the year. | CA state tax refund |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software |
| 1099-INT: Interest Income | For receipt of interest payments, and you may or may not need to pay income tax on this interest. You may still need to include the information from this form on your tax return. | Savings account interest |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if filed online with tax software. |
| 1099-K: Payment Card and Third-Party Network Transactions |
Reports credit card payments and third-party payment processing received over the internet. You should receive them if you run a business as an online retailer, ecommerce store or other online business. For 2024, the threshold amount is expected to be $5,000 with no regard to the number of transactions. For tax year 2023 and earlier, this form is issued when annual third-party network processing activity exceeds $20,000 and 200 individual transactions. There is no threshold for payment card transactions. |
Payments issued through credit card companies or third-party payment providers, like PayPal, that reach a specific threshold. |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. |
|
1099-LTC: Long-Term Care and Accelerated Death Benefits |
Reports payments under a long-term care insurance contract. Also shows accelerated death benefits paid under a life insurance contract or by a viatical settlement provider. | Received payments from a long-term care insurance policy. |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. |
| 1099-OID: Original Issue Discount | When you hold bonds or certificates of deposit (CDs) that were issued at an amount less than the face value, you typically recognize as income a portion of this discount each year until the bond is redeemed or it reaches its full matured value. Form 1099-OID reports this annual amount. | You paid less than face value for bond investments purchased through a brokerage |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. |
| 1099-Q: Payments from Qualified Education Programs (Under Sections 529 and 530) | Reports distributions from qualified tuition programs and Coverdell Education Savings Accounts (ESAs). | You received a distribution from a 529 savings plan or a Coverdell ESA. |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. |
| 1099-QA: Distributions from ABLE Accounts | Provides information related to distributions from Achieving a Better Life Experience (ABLE) accounts | You received a distribution from an ABLE account. |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. |
| Reports distributions of retirement benefits of $10 or more. | You received a distribution from your pension plan. |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. |
|
| 1099-S: Proceeds from Real Estate Transactions | Reports gross proceeds from the sale or exchange of real estate. Also used for certain royalty payments. | You sold your home. |
Due Date to Recipient: February 15 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. |
| 1099-SA: Distributions from an HSA, Archer MSA, or Medicare Advantage MSA | If you used funds from a tax-advantaged health care savings plan, the institution administering your plan will report distributions through Form 1099-SA | Received distributions from your health savings account. |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. |
| SSA-1099: Social Security Benefit Statement | Reports the amount of benefits paid and repaid. Also shows Medicare premiums, federal income taxes, and other amounts withheld from your benefits. | Received Social Security benefits. |
Due Date to Recipient: January 31 Due Date to IRS: For mailed paper returns, February 28. March 31 if e-filed online with tax software. |
What do I do if I don’t get all of my 1099 forms?
Even if you don’t receive the appropriate forms, you’re still responsible for paying taxes on all of your taxable income. If you didn’t receive a 1099, you still need to report the appropriate amount of income on your tax return. This will help you avoid a bill from the IRS for owed taxes and possible penalties.
If you haven’t received all your 1099s by the January 31st or February 15th deadlines, contact the person or business responsible for sending you the 1099 and request that they send you a copy of your 1099.
Can I file a 1099 Form electronically?
Yes, 1099 Forms can be filed electronically.
You can file your 1099 form through software like QuickBooks or on paper forms. Filing tax forms electronically can offer several benefits, such as:
- faster processing times
- improved accuracy
- increased security
- ability to track the status of your tax return
What do I do if there is an error on my 1099 Form?
If you receive a 1099 form with an error, reach out to the business as soon as possible. Ask them to correct the error.
In some cases, they may be able to correct the error before sending the incorrect 1099 form to the IRS.
If you’re an employer who submitted an incorrect 1099 Form, you’ll have to file a corrected form. Use the same method you used for the original form. Once complete, send a recipient copy to your contractor that they can use to file their taxes.
To understand more about tax deductions, visit our Self-Employed Tax Deduction Calculator for Contractors.
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