1099 Form

1099 Form

The 1099 Form is a series of tax forms used to report various types of income other than wages, salaries, and tips. The most common variant is the 1099-MISC, which is used to report payments made to independent contractors or freelancers.

The 1099 Form is issued by businesses to report payments totaling $600 or more to non-employees during the tax year. The recipient of the form must then include this income on their tax return. Other types of 1099 forms address different income sources, such as interest income (1099-INT), dividends (1099-DIV), and retirement plan distributions (1099-R).

For example, if a graphic designer is paid $2,000 by a company for freelance work, the company must issue a 1099-MISC to the designer, reporting the payment to the IRS and providing a copy to the designer for their tax records.