What is a 1099 Form?

Taxes 101

When you’re filing your taxes, you have to organize all financial paperwork  for your 1040 to be filed correctly. Many people are familiar with W-2s, but they may not be aware of another financial document needed- 1099s.  What are they for exactly? What kinds of 1099s can I expect to receive? I’ll answer these questions to help you file taxes easier.

1099s – What are They?

While W-2s record your salaries and wages, 1099 forms are for other sources of income such as  independent contractors income, unearned income like dividends and interest over the course of the year, and HSA distributions.

Some of our financial institutions have the option of downloading the forms which allows us to get the 1099s faster. We take advantage of it for convenience; if you have that option, I highly recommend going that route.

Types of 1099s

There are many different types of 1099 forms you can receive during tax time. These variants are based on the income source.  Here are just some of the more common ones:

  • 1099-C: Cancellation of Debt
  • 1099-CAP: Changes in Corporate Control and Capital Structure
  • 1099-DIV: Dividends and Distributions
  • 1099-G: Government Payments
  • 1099-INT: Interest Income
  • 1099-LTC: Long Term Care Benefits
  • 1099-MISC: Miscellaneous Income
  • 1099-OID: Original Issue Discount
  • 1099-PATR: Taxable Distributions Received From Cooperatives
  • 1099-R: Distributions from Pensions, Annuities, Retirement Plans, IRAs, or Insurance Contracts
  • 1099-S: Proceeds from Real Estate Transactions
  • 1099-SA: Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
  • 1042-S: Foreign Person’s U.S. Source Income
  • SSA-1099: Social Security Benefit Statement

The 1099s most taxpayers are familiar with are 1099-INT, 1099-DIV, and 1099-MISC. Since I’m self-employed, I keep track of what 1099s to expect from my contracts. As they come in I put them in an accordion folder until it’s time to file our taxes. It’s an easy system that helps me have everything ready.

If you want to learn more about 1099-MISC forms and how it affects you, the IRS has a wonderful resource on it.

Your Taxes and 1099s

Did you receive a 1099 this tax season? Which one did you receive? If you’re self-employed, how do you keep track and organize all your 1099s?

Comments (69) Leave your comment

  1. My father has been working as an independent contractor for this construction company that is a limited liability company. He gets paid approximately $550 cash on a weekly basis. According to my research, the employer is supposed to provide a 1099 MISC by January 31 following the tax year. It has been a year already and the company has not provided the form and my father has not filed for 2013. What can he do?

  2. The company I work for has me as a contractor and wants me to fill out a w-9. in addition I am not paying anything to federal or state. I am in college as well and get a 1098 at the end of every year. I have 3 kids. how do I file? and will I owe any taxes? or will I get a refund at the end of the year. If I file head of household

  3. I loaned a remodeling company money to purchase and flip a property. It sold in 2013 and I received my capital back plus an exit fee, a late penalty fee, and interest. What form should I use?
    Thanks!

  4. Substitute 1099-S real estate. parents passed away and me and my 5 siblings all received $22k for the sale of their home. it was sold on april 1 2013. the house appraised at $150k and sold for $136k…. every time I put it in turbo tax it tries to tax me on the money but I am being told that if it is under $500k then I should not be taxed. help me please

  5. Hello,

    I live in DE and work in PA. If I have a 1099-R do I report it on the state return where I live, where I work, or both? Please help as I do not want to pay twice for money the federal gov’t has already taxed me on.

    1. Hi Reeny,
      If you earned money in a state where you do not live you would have to do a non-resident state tax return. The state where you live will tax all of your income and give you a credit for taxes paid to the non-resident state so you are not double-taxed. TurboTax ask you simple questions and will accurately prepare your Resident and non-resident return.
      Thank you,
      Lisa Greene-Lewis

  6. Is there a TurboTax product that will assist in issuing 1042-s forms to the foreign sub-contractors I work with? I only see 1099-MISC support on the list of features.

    Thanks
    Greg

  7. Hello there. I just had a quick question. My husband was on short term disability for the last 3 months of the year. Metlife sent him checks. I was wondering where on the 1040 form I enter the amount he received from them.

    Thank you,
    Patty

  8. I am having a problem completing my taxes with you for 2013. I have a 1099-s form from real estate sale in wisconsin. Need help where to enter and deductions

  9. I just accepted a job taking care of a young boy who has a trust fund in his name. His mother said she was going to pay me through the trust fund, get a check, and that I would need to file a 1099 at the end of the year. Would I have to pay taxes on it if it’s a secondary income? Is there a form where I can get federal and state taxes taken out from a paycheck that was written out from the trust fund? I’m so confused.

  10. I received a 1099S after I already e-filed my taxes, it just arrived today…It was on the proceeds to my home, how signficantly will it change my refund once I amend my taxes? SHould I amend the return now or should I amend it next year since I’ve already filed with acceptance and am awaiting my return any day now?

  11. I did some freelance marketing services for a company who was headquartered in the United Kingdom. They paid me by EFT out of their Canadian office/business. Do they still give me a 1099 or is there another form for other countries that they are supposed to give me?

  12. Hi, I starting receiving a pension 2 years ago and use the 540ez and 1040 ez forms. I didn’t realize there was a 1099 r form. Should I be using the 1099 r form? The IRS never said anything about the forms I was using. If so, does the 1099r form have a section to add income from a w2 as well…as I have to report income for my domestic partner who is on my medical plan. Thank you!!

  13. I worked for a company as a contractor and now they’re telling me that they can’t provide 1099 Form. I’ve earned about $6000 from them in 2013. Can I still file my taxes without the 1099 form? Thank you.

    1. HI, I STARTED MY OWN CLEANING BUSINESS FOR ABOUT 4 MONTHS. THE JOBS I WORKED I RECIEVED CASH. MY ORIGINAL JOB I DO IS HAIRSTYLISH WHICH I ALREADY FILED FOR. CAN I STILL FILE AN AMENDED RETURN FOR THE CLEANING BUSINESS IF I WAS PAID CASH AND DID NIOT RECIEVE ANY W2 OR SHEDULES. AND IF SO WHAT WILL I NEED TO DO

      1. Hi,
        Yes you can file an amended tax return as long as your tax return is accepted by the IRS. If it is rejected you can go in and fix your tax return. Although you were paid in cash you should claim your cash for the cleaning business.
        Thank you,
        Lisa Greene-Lewis

  14. I received a 1099 misc income for a payment received from having been diagnosed with cancer………. To be clear this was NOT for medical expenses, re-imbursements etc…… But was a one time payment for having been diagnosed with cancer, my wife had all the premiums deducted from her paycheck….

    Does anyone have a clue to how report this even though it should be IMO non taxable???

    1. Hi,
      If you received a 1099-misc, you should report this as other income on your tax return. TurboTax will ask you questions about your situation and put the correct information on your tax return based on your answers.
      Thank you,
      Lisa Greene-Lewis

      1. Ah Ok! But the misc 1099 says I need to use schedule C. Thus line 21 can’t be used…… So in essence I’m still looking for the work around for income that should not be taxed.

  15. I will receive a 1099 DIV form for a mutual fund that we own. We never received any of the dividends because they were automatically re-invested, total dividends is less than $1,500 so no schedule B. Even though they were re-invested I know it is still taxable income.

    1. Will Turbo Tax Deluxe help me with what needs to be done here, or do I need to go up to the premier?

    2. If the total was greater than $1,500 then do I need to go up to premier, or would deluxe still work?

    Thanks,
    Steve

  16. Need help worked as a subcontractor last year and did about 17 thousand in income filed a w9 with who I was sub contracting work for spent at least 3 thousand in business expenses and claiming one 8 year old dependent will I owe taxes or get a refund?

  17. Hi,
    As per the information we learn something about the 1099. Thats the forms to mentions reports is tobe cleared some doughts for that 1099 process . Thanks for the your information…..

  18. I taught public school in Arizona where I left a small sum in state retirement for several years. I have reached retirement age and can either take a small monthly payment or take a lump sum refund. If I take the refund, is that taxable? It no longer draws interest.

  19. I am thinking about taking a job, this company has informed me that for the first month of employment, my income will not be taxed. They have instructed me to file a 1099 form. When does this need to be done? Is it at the end of the year with the w2′s?
    Thanks,
    Marquita

  20. I did a hardship withdrawl from my 401K ($26,000) last year and didnt have the taxes withdrawn, Because of that, I owe $5000+ to the IRS and still havent filed my taxes for this year. How do I work out a payment plan for that thru Turbo Tax or can I not file that 1099 RT until next year? HELP!!!

    1. Hi Terri,
      You can still file your taxes with TurboTax even if you owe money and can’t pay. When you file your taxes you can pay whatever you can. Even if you can’t pay anything, once the IRS processes your tax return they will notify you by mail of the balance due and offer you options such as an installment agreement. The notification will let you know exactly what to do in order to set up an installment agreement. Installment agreements can now be paid over 6 years.

      http://blog.turbotax.intuit.com/2013/04/22/relief-if-you-filed-on-time-but-cant-pay-your-taxes/

      If you received a 1099 for 2012 you also want to file before the October 15th extension deadline since your 1099 information for 2012 has already been reported to the IRS.
      Thank you,
      Lisa

  21. I am currently working as a independent contractor and I am 100% commision. I have not made any sales yet, so no commisions have been paid to me. I do not have a full time job, I was let go from my last job. Can I collect unemployment untill I either find a full time job or I start making enough sales to support my family?

  22. I am a foreigner.I have property in US.I have just let out the property,I received monthly rental income.I borrowed money from my country to invest in this property.I have paid my property tax.I also carried out extensive repairs on the property.For the few months on rent,i have also paid for maintenance and HOA fees.Please,which of 1099,do i need to file and the merits ?

  23. Approximately 2 years ago I had a contractor do work on my house costing me $43,000.00 which I had paid him in cash from a Lone I took out from a Bank! Yes I have a signed receipt! I was recently told I was supposed to file some sort of tax form on him! Is that true?

  24. I did some holiday seasonal work for the month of Dec 2012 none for 2013 – when I requested a 1099 from the guy I worked for he said they run on a fiscal year and that I wouldn’t need to file those taxes until 2014 and I would receive a 1099 in January 2014- I am so confused and I don;t know how to proceed ..can anyone help me

  25. Do I pay income tax on trust distribution income from a settled estate? (received a 1099 misc.)

    The trust was included in the estate tax return and taxes were paid when the estate was settled last year. Why do I have to pay taxes again on the distribution income?

  26. I have a booth at an antique store. The owner collects sales tax on all purchases and says they will send me a 1099 at the first of the year. Why would they send me a 1099? I am not employed by the store – only a reseller. BTW, I didn’t get one this year like they said.

    I know I owe taxes on the monies earned (minus my costs) but is there anything I should fill out on my 1040? What form?

  27. I’m 73 yrs. old and my wife is 70 yrs. old this year. We have been receiving 1099 -R from our pensions (we each have two). I’m using TurboTax (TT) and this year when I entered my two 1099-R’s TT asked if this was a Minimum Required Distribution (MRD) because I am over 70 and 1/2. If I answer yes it asks if the amount is part or all of the MRD.

    I answered this question correctly for the 1099 – R from my Fidelity 403b because the give me the MRD for my first withdrawal, but I not sure how to answer the question for my pensions. What is the effect if I answer No?

  28. I wrote a children’s book which is due to be published THIS year,, but I paid an illustrator in 2012. Do I have to issue him a 1099 MISC? (and he’s in Canada, does that make a difference?)

  29. Where do I enter information from a 1099-CAP in Turbo Tax? I have been through it and cannot locate anywhere it asks for that particular 1099.

  30. How will a 1099c affect my taxes for the following year. I am thinking of settling a debt of 6000 dollars by paying it off for 2500 dollars. Is that a good idea or will that hurt me in the long run to pay off this debt because they say they must tell me that a possible 1099c with be submitted. Any help in this matter would be greatly appreciated!!!

  31. An SSA1099 form came to the house for my son who passed in July due to cancer. He lived with me. Am I suppose to file it for him? What do I do with it?

    1. Hi Linda,
      Sorry about your loss. You will have to file it if he received other taxable income, because if he received other taxable income then the social security income may be subject to tax. If he didn’t receive any other taxable income then you won’t have to file it.
      Thank you,
      Lisa Greene-Lewis

  32. My husband was injured and went on short term disability. We had to borrow 10,000 from 401 k in order to pay our bills. The medical bills came to over 7500.00. Can we claim a hardship, and get a tax break???

  33. I was employed by a very poorly run company for only two months. I was receiving personal business checks, and never signed anything with the company stating I am employed by them etc. After working for them I found out that I was paying for all extra expenses for traveling and supplies on my own. They told me to keep those receipts for tax deductions and told me I can pay taxes quarterly or however I would like. They call me today asking for my information for a 1099. Is that the correct form? I was basically an employee on their payroll so to speak. The reason I left the company is they were taking over a month to send me my checks and were not holding up their end since they were not doing financially well.

  34. my husband has a 1099 misc form from his payer for independent contracting. i put his tax in using home and business on turbo tax. do i have to enter it in both the business and the personal part of it? Or do I just enter it in the business.. when i do both its coming back he owes

    1. Hi Nicole,
      You should only enter it under business income not both. Make sure you take it out of personal. Also claim any expenses he had related to the business.
      If you have more questions you can ask our tax experts your question for free. Contact them by going to the “Help Along the Way” tab, Ask your question, then go to “Contact Us”
      Thank you,
      Lisa Greene-Lewis

  35. I received a 1099-R form. It shows I paid taxes out on it prior to the deduction from the account. Would this still have to be filed?

  36. i had to do a short sale of my home and recieved a 1099-A from the second mortgage holder .
    What does this 1099-A actually represent, from the stand point of the bank (mortgage holder)
    and my stand point the homeowner.?

  37. I am working with a man that has Autisum, and his mother wonts me to be a caregiver for him 5 hours a day, for $8.30 an hour, and drive him to the movies, bowling, the park. etc… and she will not give me a gas allowence? She says, she wonts a copy of my ss card, cause she is gonna give me a 1099 to file out . Do i save my gas receipts!!!

    1. Hi Starla,
      Yes, you should save your gas receipts as well as any other receipts associated with your business as a caregiver. She should be issuing a 1099 to you for what she pays you. Then you will have to file a schedule C, which is for people who are self-employed. Please check back when you get ready to file, as TurboTax easily guides you through this process and we also have tax experts available to help.
      Thank you,
      Lisa Greene-Lewis
      blog.turbotax.intuit.com

  38. My wife receives money from a trust fund. We get paid out roughly $4000 a month. Are taxes are filed for us by the mangers of the trust.

    We are trying to move into a new apartment and need a 1099. Where would I get this?? Would the people doing are taxes have them??

    THANKS!!

    1. Hi Sean,
      You should receive a K-1 from the administrators of the trust so I would call them and request it. If you do have K-1 income, it should flow through(be reported)on your tax return. The K-1 should have come to you and not the people doing your taxes unless they usually have it sent there.

      In the future, you may want to try TurboTax. TurboTax guides you through the necessary entries and we have free tax advice from tax professionals if you use our tax software.

      Thank you,
      Lisa Greene-Lewis

  39. I’m an independent contractor for a company and have a 1099-MISC, I’m wondering what the best turbo tax program to use is? Would the basic suffice or should I use the home and business?

    1. Hi Alex,
      Basic will suffice, however deluxe or home and business is better to use if you are an independent contractor.
      Thank you,
      Lisa Greene-Lewis

    1. Hi Rich,
      On your federal tax return you should include your 1099s and on your state tax return you only need to include them if state taxes were deducted.
      Thank you,
      Lisa Greene-Lewis

  40. My husband received a 1099 misc i think and it was for some gift cards that he had gotten I am not too sure as to what to do next?

    Please Help..

    1. Hi Heather,
      The income on the 1099-Misc has to be claimed as other income. In TurboTax go to the federal taxes tab, wages and income, click explore on my own, scroll down to the other income section, click start in the income from 1099-misc section.
      Thank you,
      Lisa Greene-Lewis

    1. Hi Michelle,
      It depends on your other income and deductions. You will pay taxes based on your tax rate after considering your total income and deductions.
      Thank you,
      Lisa Greene-Lewis

  41. I an confused…I read the IRS publication and I believe it states that you do not have to report rental income received for 2011? We rented out our home in 2011 and received rent each month…do I have to report this on my taxes and should receive a 1099 form from my renter?

    1. Hi Jessica,
      Yes you are required to report the rental income on schedule E, but you can also deduct expenses related to your rental like, mortgage interest, property taxes, repairs, improvements, and depreciation. TurboTax Premier will guide you through those entries.
      Thank you,
      Lisa Greene-Lewis

      1. I just received a 1099 form from my renter…was she supposed to issue this? We ended up having a horrible relationship & she was kicked out & I think she is trying to give me a hard time by sending this 1099 – I do not file the 1099 with my tax return, correct? She gave me three copies. She does not file any of these with her tax return either does she?

  42. I have tried to efile and I was sent back a notice that my return was rejected due to my federal withhodlings & 1099 not matching what was sent to the IRS. All I have received are my W-2s and that is what I used. I am not expecting any 1099s, so I am unsure what has been left out. Please contact me to let me know.

    1. Hi Mary,
      If you don’t receive the missing form, you can contact the IRS to find out what 1099s have been reported at 800-829-1040.
      Thank you,
      Lisa Greene-Lewis

    1. Or let me rephrase… If you settle on a property that was a primary residence for one person and a non-primary residence for another. Who issues the 1099-S?

      Thanks in advance for the response.
      Bill

  43. Whoa! Thanks for the information! I’ve got a website that helps people save on their taxes. Your readers might be interested

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