All You Need to Know About the 1099 Form

If you have a professional tax accountant on your side, you don’t need to know much about the different tax forms.

1099 form

But it’s always best to learn as much as possible about what your accountant is doing.

For example, most of us are aware of W2s given to us by an employer, but not so many people are aware of 1099s.

The W-2 is a record of your salary paid to you throughout the year. The 1099 and its variations are designed for reporting any additional sources of income.

If you were freelancing on the side or you earned any income from investments, it would be reported on a 1099 form.

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What are the Different Types of 1099s?

There are lots of different 1099 forms you might receive. You’ll need to look into this based on your circumstances, but we’ll go through some of the most common ones.

The 1099-INT, 1099-MISC, and 1099-DIV forms are the ones you likely already know about for reporting things like interest income and dividend income.

But if you have canceled debts, you may also need the 1099-C form for cancellation of debt.

Other forms to report changes include the 1099-CAP for corporate control changes and 1099-S to report any proceeds from the sale of real estate.

You must also report government payments on Form 1099-G and long-term care benefits on 1099-LTC.

Other forms include the 1099-OID for any originally issued discounts, 1099-R for distributions from things like pensions and annuities, as well as the 1099-SA for distributions from an HSA.

Keep Things Organized

Remember that even if you didn't get a 1099 form, you still need to report your income. Not receiving a form is not an excuse for late filing or failing to file at all.

You must be aware of your tax affairs, and you need to keep things organized. Create a separate area of your home for your various tax records, so you’re prepared for tax time.

Online tax filing makes it quick and easy, which is why we recommend you use it when filing your taxes this year.