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?