This tax season, you may receive a Form 1099 in the mail, specifically if you performed work outside your typical employer. You’ll need this document to file your tax return, so it’s important you store it in a safe place until you have everything you need to complete your return.

What is a 1099?

This form documents money you receiver from an entity or person who is not your employer. Typically, the payer produces the 1099 and sends both the IRS and you a copy. Some examples of when you might receive a 1099 include:

• The financial institution to which your IRA belongs wrote you a check from the account
• Your bank paid interest on your savings account
• You received a tax refund from the state
• You performed services for payment as a freelancer or self-employed individual

The Form 1099 will include your taxpayer identification number, which may be your Social Security number. This way, the IRS will know you received income, and will be expecting to see the earnings documented on your tax return.

It’s worth noting that simply receiving a 1099 doesn’t mean you’ll owe money to the IRS. The earnings may be offset by credits and deductions, or it may be subject to certain exemptions based on the payer and situation which caused the form to be created. However, the IRS knows the income exists.

Different Types of 1099

There are many different types of Form 1099 that exist. The following are the most common, and those you are most likely to encounter:

• 1099-A: Refers to the cancelation of debt, such as a short sale of your home or the cancelation of your mortgage by the lender. The IRS considered this debt cancelation as income, and in many cases it’s taxable.
• 1099-B: generated during the sale of several types of securities, as well as bartering via exchanges, usually online. The exchange may send a form to document the income received. You won’t receive a 1099 if you barter directly with a person, though the income must be reported.
• 1099-C: refers to debt settlement, such as a lowered amount from a credit card issuer. The forgiven amount is taxable, as reported on the 1099-C.
• 1099-CAP: For those who received cash, stock, or property after a corporation in which they hold shares restricted their capital or were acquired.
• 1099-DIV: A common 1099 documenting dividends received. This doesn’t include dividends on your share account at a credit union. Those are seen as interest, which are documented on another form.
• 1099-G: Any income received from a government agency, including federal, state, and local, is documented on this form. This includes tax refunds, credits, offsets, and unemployment compensation.
• 1099-INT: Interest over $10 from a bank, broker, or financial institution is documented on this version. This includes dividends from your credit union share account. This form can help you make strategic choices regarding your investments.
• 1099-LTC: Payments from a long-term care insurance will generate this version. Accelerated death benefits from a life insurance policy will also be reported on this form.
• 1099-MISC: Income you receive that isn’t applicable to other 1099 forms will be documented on a miscellaneous form. Prizes and awards are typically listed on this form.
• 1099-OID: any bonds, notes or financial instruments purchased at less than face value or redemption value at maturity are listed on this form. All notes must be more than one year of maturity.
• 1099-PATR: Documents at least $10 in patronage dividends from those who belong to a co-op.
• 1099-Q: documents the amount of money you, your child, or your child’s school received from a 529 tuition plan. Remember than when used for qualified education expenses, the money is not usually taxable, so the form may just be needed for record keeping.
• 1099-R: Distributions from pensions, retirement plans, IRAs, annuities, or profit-sharing program are listed on this form. Loans taken from your retirement plan may be considered a distribution, and therefore documented on this form, along with permanent and total disability payments under life insurance. Many retirement plans have tax advantages, so this form may just be needed for record keeping.
• 1099-S: This form is generated by the closer of a sale or exchange of real estate, which reports your proceeds. Sometimes, the proceeds from the sale of your home aren’t taxed, so ensure you know the correct way to use this form in filing your return.
• 1099-SA: Any distributions from a health savings account, medical savings account, or Medicare Advantage are listed here. Typically, when used to pay for qualifying medical expenses, these distributions are taxable, leaving this form to serve as proof of your receipt of the money.