A Form 1099 is a tax form for various types of income you may receive throughout the year other than the salary your employer pays you. The person or entity that pays you provides this form to you. There are a number of types of 1099s. For example, a 1099-MISC for miscellaneous income, a 1099-DIV for dividends, and a 1099-INT for interest from savings accounts.
Self-employed people and independent contractors receive 1099-MISC forms from their clients who pay them $600 or more in a year in “non-employee compensation.” For more information on the 1099-MISC, visit the IRS’s website.
A 1099-INT is a tax form used for people who have periodic interest payments. 1099-INT forms are commonly used for people who have savings accounts. For more information on the 1099-INT, visit the IRS’s website.
A Form 1099-DIV is used to report dividends and other distributions received throughout the year for people who have stock investments or mutual funds. These payments are amounts paid out of a corporation’s earnings directly to shareholders and different than the income you earn from selling stock. For more information on the 1099-DIV, visit the IRS’s website.
Form 1099-R reports withdrawals from a traditional IRA, which are taxable. The form also covers other types of distributions such as pension plans, annuities, and profit-sharing plans. For more information on the 1099-R, visit the IRS’s website.
Form 1099-C is used for debtors for whom $600 or more of a debt is cancelled. This is done because the amount of the debt cancellation may be taxable to you. For more information on the 1099-C, visit the IRS’s website.