There are a variety of Form 1099 one may receive when collecting their tax documents. If you’re a worker, you won’t fill out the form yourself, but will receive it from the party who paid you or holds your investment account. Its one of the few tax forms that simply report information and you aren’t required to fill them out yourself.
1099-Misc: This type is for miscellaneous income, such as freelancing work, independent contracting services, or internships. Regular employees have their income reported via a W-2. Those who paid a freelancer or independent contractor will need to use a 1099-MISC to report the person’s wages, so make sure the person who hired you has your correct information and address.
1099-INT: You’ll receive this form if the bank has paid you interest periodically. If you have a savings account, the bank will supply a 1099-INT to document the total amount of interest you earned throughout the year. It is taxable, so don’t forget to report it when you file your tax return, even if it’s a small amount.
1099-DIV: Used for reporting dividends from any investment accounts, a 1099-DIV will be supplied from your broker. Dividends are different from capital gains and losses acquired when selling assets, as these are reported separately. Don’t forget to include dividends when you file your tax return.
1099-G: G is for government, meaning any earnings from unemployment or state tax refunds are reported on this form. Unemployment compensation is taxed at the federal level and needs to be reported on your tax return. If you claimed a deduction for state taxes, you’ll need to report state taxes listed on the 1099-G as income when you file your federal return.
1099-R: This form is used to report withdrawals from a traditional IRA or other retirement account. The form will come from your broker that handles your retirement account and will document each withdrawal throughout the year. This form also covers pensions, profit-sharing and annuity withdrawals as well.
1099-C: Comes from a creditor who has canceled a portion of your debt. For example, your credit card company offers a settlement of your debt, and you can expect to receive a 1099-C. The bad part is that canceled debt is considered taxable income, so your tax liability may increase.
All 1099 forms should be received by January 31st to allow for enough time to complete your tax return by the April tax deadline. You should contact your bank or employer if you haven’t received your 1099 form and ensure that they have the correct information on file.
