Browsing: 1099 Forms

A 1099 form is a type of IRS document used to report various kinds of income that isn’t from a standard employer-employee relationship. This includes money earned through freelance gigs, contract work, interest from bank accounts, dividends from investments, or even canceled debts. Since these earnings don’t come with tax withholding like a regular paycheck, the IRS uses 1099 forms to track income that might otherwise go unreported. If you receive a 1099, it means the IRS does too, so it’s important to include it in your tax return.

There are several types of 1099 forms, each meant for a specific kind of income. For example, 1099-NEC is used to report non-employee compensation (like payments to freelancers or independent contractors), while 1099-INT covers interest income, and 1099-DIV is used for dividends. Receiving one doesn’t always mean you owe taxes, but it does mean you need to review the income and determine if it’s taxable. Keeping accurate records of this income throughout the year can help avoid tax-time surprises and ensure smooth filing.