1099

1099 is a designation for a set of United States tax forms used to report various types of income other than wages, salaries, and tips. The forms are part of the broader information-return system used by the Internal Revenue Service (IRS) to track income that may not have been subjected to withholding. Each 1099 form reports a specific category of payment to a recipient and to the IRS.

Common 1099 forms include:

- 1099-INT for interest income

- 1099-DIV for dividends and distributions

- 1099-MISC for miscellaneous income (historically including certain payments; since 2020 many nonemployee compensations are reported on 1099-NEC)

- 1099-NEC for nonemployee compensation

- 1099-B for broker and barter transaction proceeds

- 1099-G for certain government payments

- 1099-R for distributions from pensions, annuities, and retirement plans

- 1099-S for real estate transactions

- 1099-K for payments through third-party networks and payment cards

Issuance and purpose: The payer issues the appropriate 1099 form to the recipient and to the IRS. Recipients use the information to prepare and file their tax returns, while the IRS uses the data to verify reported income.

Deadlines and thresholds: Recipients typically must receive their 1099 by January 31. The IRS filing deadlines vary by form and filing method, and penalties can apply for failure to file or furnish. Thresholds for reporting differ by form and payment type, with some payments requiring reporting only above certain amounts.

History and notes: The 1099 series has long served as a primary mechanism for reporting income outside traditional wages. In 2020, the nonemployee compensation reporting moved from 1099-MISC to 1099-NEC, clarifying the distinction between independent contractor payments and other miscellaneous payments.

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