1099 Form
A series of IRS forms used by payers to report payments made to non-employees, including independent contractors, freelancers, and other recipients of certain income.
What Is a 1099 Form?
IRS Form 1099 is an information return used to report various types of income other than wages, salaries, and tips. There are more than 20 variants in the 1099 series, each for a specific category of payment. The most common is Form 1099-NEC, which reports nonemployee compensation of $600 or more paid to independent contractors during the calendar year.
Major 1099 Variants
- **1099-NEC**: nonemployee compensation (independent contractors, freelancers) - **1099-MISC**: rents, royalties, prizes, awards, and other miscellaneous income - **1099-INT**: interest income from banks and financial institutions - **1099-DIV**: dividends and distributions from investments - **1099-K**: payment card and third-party network transactions (Stripe, PayPal, marketplaces) - **1099-R**: distributions from retirement plans and IRAs - **1099-B**: proceeds from broker and barter exchange transactions
Filing Deadlines and Penalties
Most 1099 forms must be furnished to recipients by January 31 of the year following the payment. The 1099-NEC must also be filed with the IRS by January 31. Other 1099 series forms generally are due to the IRS by February 28 (paper) or March 31 (electronic). Penalties for late or incorrect filings range from $60 to $310 per form, depending on how late and whether the failure was intentional. Recipients should retain 1099 forms for their tax records and report the income on the appropriate schedule of Form 1040.