A 1099 form is for filing non-employee compensation including a range of common business dealings, financial payments and accounts, and the exchange of certain goods and services. Perhaps, the most common reason people ask this question is they receive a form in the mail and they’re not sure what to do with it or how it relates to their end-of-year tax filing. The 1099-MISC or 1099-INT are among the most commonly filed forms. (Maybe you got lucky at the local casino, or maybe you earned interest from your savings account.) It’s basically any non-employee income that may potentially count toward your tax liability. In some cases, the qualifying threshold may be $600. For other payments, it may $10 or even any payment amount at all.
For other people, the question is even more complicated and relates to a new business filing requirement. There are any number of financial institutions, titling companies, insurance companies, government agencies, and corporate entities that may be subjected to various 1099 filing requirements. And it’s important to know which ones apply to your business.
What is the 1099 Form Used For?
A better way of putting this question is: What is the 1099 form for my business? Which one am I looking for? Which one do I need to read up on? Which one do I need to send away for to get form copies? With these questions in mind, here’s an informal guide to the different types of 1099 forms.
- 1099-MISC: Most often, this form is used for rents, royalties, and independent contractor payments. It also includes a number of “miscellaneous” categories including crop insurance, prizes and awards, as well as certain medical and legal service payments.
- 1099-A: Use this form for the acquisition or abandonment of certain types of secured property not already accounted for by 1099-C.
- 1099-B: Account for proceeds that originate from broker transactions and barter exchanges. Includes the sale of stocks, commodities, debt instruments, and certain financial contracts.
- 1099-C: For the cancellation of debt, as well as the acquisition/abandonment of secured property.
- 1099-CAP: This is used to document changes in corporate control and capital structure.
- 1099-DIV: Use this form for dividend distributions and liquidation including foreign tax and federal income tax withheld on dividend payments.
- 1099-G: Certain government payments including unemployment compensation; income tax refunds, credits, or offsets; reemployment trade adjustment assistance (RTAA) payments; taxable grants; or agricultural payments.
- 1099-INT: This form is used for interest income not already accounted for as interest-exempt dividends.
- 1099-K: This form accounts for certain payment card and third-party network transactions.
- 1099-LTC: Long-term care payments and accelerated death benefits are accounted for with this form.
- 1099-Q: Use this form for payments made through qualified education programs.
- 1099-QA: This form is used for distributions made through ABLE accounts and qualified disability expenses.
- 1099-R: Distributions made through pensions, annuities, and other retirement plans.
- 1099-S: Used for the sale of real estate and certain royalty payments.
- 1099-SA: This form is used for distributions made through qualified health savings accounts.
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