¿What are IRS 1099 forms?
IRS Form 1099 is a set of tax forms that document different types of payments made by a person or business, usually not your employer. The payer completes the form with the appropriate details and sends copies to you and the IRS with the report of the payments made during the tax year. In some cases, it is also necessary to send a copy to the state tax authority. The payer is responsible for completing the appropriate 1099 Tax Form and submitting it to you. Such payments can be for rental income, earnings earned as a self-employed or independent contractor, a tax refund received from your state or locality, gambling winnings, and more. Most 1099 Forms are due by January 31, but in some cases the deadline is February 15.
There are many types of 1099 forms such as
• 1099-MISC for jobs as a contractor or self-employed person, royalties, rewards, winnings related to prizes and gambling, and others
• 1099-NEC: Non-Employee Compensation
used to report non-employee compensation, such as income earned as an independent contractor, freelancer, or self-employed person.
• 1099-B: Income from a Broker and Exchange Transactions
To report sales of stocks, bonds, derivatives, or other securities during the tax year through one or more stockbrokers.
• 1099-C: Cancellation of Debt
To reach an agreement with a lender negotiating the cancellation of a debt, such as repossession of cars, houses, bankruptcies, etc.
• 1099-G: Certain Government Payments
To report unemployment compensation, as well as any state or local income tax refunds for the year.
• 1099-A: Acquisition or Abandonment of Property Under Mortgage
If your property was foreclosed during the tax year, you may receive this form from your mortgage lender in the event that part or all of your mortgage has been paid off, you have lost property, or your property has been sold at a lesser value sale. to mortgage debt.
• 1099-INT (for interest from bank accounts.
1099-DIV for investment distributions and dividends. They generally come from investments. It is also often the method by which money is distributed in C Corporations.
• 1099-R (for distributions from 401(k) retirement plan accounts); IRA accounts; savings plans for government employees; annuities (retirement plans offered by companies insurance) and pensions
• 1099-SSA: Statement of Social Security Benefits
To report the amount of benefits paid and repaid, Medicare premiums and other amounts withheld, as well as federal income taxes withheld for the year for Social Security benefits.
• 1099-S for income from real estate sales.
¿Who sends Forms 1099?
There are several types of 1099 Forms to document payments that a person or business makes to another party. Because payments are recorded on 1099 Forms, many people may receive multiple 1099 Forms for different reasons.
One of the most popular 1099 Forms is Form 1099-NEC which is used for non-employee compensation payments. For example, if you're an independent contractor or self-employed, you might receive a Form 1099-NEC documenting the payments you received from a particular payer throughout the year.
Non-employee compensation payments of less than $600 do not require filing Form 1099-NEC, although the payer may choose to do so.
