1099 Form: If you have received payment from someone other than your employer, you may have received an IRS 1099 form. This is an informational form, meaning you do not have to pay taxes on it, but it is necessary to report this income.
If you have earned any additional income and do not report it, the IRS can audit you and you may have to pay a penalty. That is why it is very important to understand all 1099 forms and report them correctly. Here we will explain in detail about 22 different 1099 forms so that you can do your tax filing easily.
1. 1099-A: Foreclosure or seized property
If you took a loan for a property and it got foreclosed (i.e. the bank took possession of it), then you will get a 1099-A form.
When do you get it?
- When a bank or lender forecloses on your home or property
- If you bought an investment property and abandoned it
How to report?
- Report the income on Form 4797 or Schedule D
- If the loan is forgiven, you may also receive a 1099-C
- If your personal car loan defaults and the car is seized, you will not receive this form, as the car is not considered property.
2. 1099-B: Stocks, mutual funds, and trading income
If you sold stocks, mutual funds, or any other investment in the stock market, you will receive a 1099-B.
When do you receive it?
- When you sold shares, stock options, mutual funds, commodities, or cryptocurrencies
- If you invested in a company and sold it
How to report?
- Report this income on Schedule D and Form 8949
- If you missed it, the IRS may send you a CP2000 notice
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3. 1099-C: If your loan was forgiven
If a credit card company, bank, or lender forgave your loan of $600 or more, you will receive a 1099-C.
Is it taxable?
- Yes, it is considered income and must be reported
- But if you have declared bankruptcy or had a loan forgiven under a loan forgiveness program, it will not be taxable
How to report?
- Report it in the “Other Income” section of Form 1040
4. 1099-DIV: Dividends and investment gains
If you have received dividends or capital gains from the stock market, you will receive a 1099-DIV.
When do you get it?
- If you received a dividend of $10 or more
- If you earned capital gains from a stock or fund
How to report?
- Report it on Form 1040 and Schedule B if the income is more than $1,500
5. 1099-G: Government payments (such as unemployment benefits)
If you receive unemployment benefits, tax refunds, or other payments from the government, you will receive this form.
What if you received it by mistake?
- If you did not receive unemployment and still received a 1099-G, it could be fraud
- Contact your state unemployment office immediately
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6. 1099-INT: Bank interest
If you received interest on a bank account, FD, or bonds, it will be reported.
How to report?
Report it in the “Interest Income” section of Form 1040
7. 1099-K: Online Payments and Digital Income
If you received payment from a digital platform (such as PayPal, Venmo, Uber, Etsy, eBay), you may receive this form.
When do you get it?
- When you earn more than $5,000 on a digital platform
How to report?
- Report it in your Business Income (Schedule C)
8. 1099-MISC: Miscellaneous Types of Income
If you received prize money, rental income, healthcare payments, or attorney fees, you will receive this form.
How to report?
Report it on Form 1040
9. 1099-NEC: Freelance or Self-Employment Income
If you earned $600 or more, you will receive this form.
Who gets it?
- Freelancers (writers, designers, coders)
- Consultants and self-employed people
How to report?
- Report it on Schedule C
10. 1099-R: Withdrawal from retirement account
If you withdrew money from a 401(k), IRA, or pension, this will be reported.
Is it taxable or not?
- If it was pre-tax income, you will have to pay taxes
- If you rolled it over to another account, you will not have to pay taxes
11. 1099-S: Income from real estate
- If you sold a property, you will get this form.
How to report?
- If it was your primary residence, you may get some tax exemptions
What to do if you did not receive a 1099 form?
- The deadline for companies to send out 1099 forms is January 31
- If you don’t receive it by February 15, contact the company that issued the form
- If you still don’t receive it, call the IRS at 1-800-829-1040
Conclusion
If you have earned any additional income, report it correctly. The IRS can audit and impose penalties for incorrect reporting or missing income. If you have any confusion, consult a tax expert or CPA.
