What Is a 1099 Form? How It Works, Who Gets One
A 1099 form is a record that an entity or person (not your employer) gave or paid you money. One copy goes to you and another copy goes to the IRS.
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Key Takeaways
A 1099 form is a tax document issued by a business or entity summarizing the nonemployee income you received from them during the year. This can include freelance earnings, rental income and dividends.
Receiving a 1099 doesn't automatically mean you owe taxes on that income, but you will need to report it to the IRS on your tax return. Most people should receive a 1099 form detailing the previous year's income by January 31.
What is a 1099 form?
1099 forms are documents that you might receive from a business or another entity that summarize payments made to you throughout the year as a nonemployee. Businesses are responsible for generating 1099s and sending them to their customers or clients. They are also required to send copies to both you and the IRS.
You'll typically receive a 1099 by the end of January or early February the year after the income was earned. You'll use it to figure out how much income you received during the year and then report that income in different places on your tax return.
If you need help estimating how income on a 1099 form could affect your tax bill, check out our free tax calculator.
Who gets a 1099?
People can get a 1099 form for different reasons. For example, freelancers, independent contractors, and other gig workers often get a 1099-NEC from their clients outlining their income earned. People who earned interest from a high-yield savings account may receive a 1099-INT from a bank.
If you've earned multiple types of taxable nonemployee incomes with the same institution, you may get what's known as a consolidated 1099. Someone who does a lot of business with a single brokerage account provider may, for example, get a 1099-B (which reports taxable capital gains) and a 1099-DIV (a report of income earned through dividends) rolled into one 1099 form.
Some of the most common 1099s include:
1099-B: This form covers income from the sale of several types of securities and investments, such as stocks, as well as some types of bartering that take place via bartering exchanges, typically websites. In that case, the exchange might "1099" you for the income you received. A 1099 isn't usually required if you barter with someone directly, though you may have to report the income.
1099-DIV: One of the most common forms of this is the 1099-DIV, which reports dividends you received. This doesn’t include dividends on your share account at a credit union. The IRS considers those interest, so they appear on a 1099-INT.
1099-INT: If you earned $10 or more in interest from a bank, brokerage or other financial institution, you’ll receive a 1099-INT.
1099-K: If you received $5,000 or more of business income or payments for goods and services via credit card or a third-party payment system (such as Venmo or Cash App) in 2024, you should be sent a summary of those payments on a 1099-K. This threshold is lowered to $2,500 in 2025 (taxes filed in 2026) and further decreases to $600 in 2026 (taxes filed in 2027).
1099-MISC: Much like the name implies, this form is a catch-all for income that doesn’t fit into other 1099 categories — though it does have some specific purposes. Income from prizes and awards is an example of what goes on a 1099-MISC.
1099-NEC: In 2020, the IRS reintroduced the 1099-NEC, which companies now use to report money paid to people who did work for them but weren't employees. In other words, if you freelanced, were self-employed or had a side gig, your clients should send you a Form 1099-NEC instead of a Form 1099-MISC in the mail.
A 1099 form is only sent for nonemployee payments. This means that if you're an employee, your income isn't reported on a 1099 but on a W-2 form instead.
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Do I need a 1099 to file my taxes?
Yes, you'll need your 1099 to accurately report your income on your tax return. A copy of this form is also sent to the IRS, so you can be sure the agency knows about this income.
However, simply receiving a 1099 tax form doesn’t necessarily mean you owe taxes on that money. You might have deductions that offset the income, or some or all of it might be sheltered based on the characteristics of the asset that generated it.
When are 1099s sent out?
Most 1099s are due to the recipient by January 31 the year after the income was earned. If the 1099 due date falls on a weekend, the deadline rolls over to the next business day. Certain types of 1099s, such as a 1099-S, aren't due until mid-February.
If you're expecting a 1099 and don't receive it by mid-February, the IRS suggests contacting the payer as soon as possible. You can also call the IRS' main customer service number for help if you can't get in touch with the entity that owes you a 1099.
Types of 1099 forms
In addition to the most common types of 1099 forms listed above, other types of information returns can include:
1099-A: You might receive Form 1099-A if your mortgage lender canceled some or all of your mortgage or you were involved in a short sale of your home. Canceled debt is income in the eyes of the IRS — and it’s generally taxable.
1099-C: If you persuaded a credit card issuer or another lender to settle your debt for less than you owe, you’re not entirely off the hook. The amount the lender forgives is probably taxable income, and the 1099-C tells all.
1099-CAP: You might receive a 1099-CAP if you hold shares of a corporation that was acquired or underwent a big change in capital structure and you got cash, stock or other property as a result.
1099-G: If you received money from the state, local or federal government — including a tax refund, a credit or an offset — you might get one of these. If you were on unemployment during the year, you might also have a 1099-G headed your way.
1099-LTC: If your long-term care insurance paid out benefits during the year, the insurer will probably file a Form 1099-LTC. If you received payments from the accelerated death benefits of a life insurance policy, those are reported on this form, too.
1099-OID: You might receive Form 1099-OID if you bought bonds, notes or other financial instruments at a discount to the face value or redemption value at maturity. Typically, the instrument must have a maturity of more than one year.
1099-PATR: If you belong to a co-op and received at least $10 in patronage dividends, expect to see Form 1099-PATR in your mailbox.
1099-Q: The 1099-Q reports money that you, your child, or your child's school receives from a 529 plan. Keep in mind, however, that the earnings in a 529 plan are generally not subject to tax when they’re used for qualified education expenses, so for many people, the 1099-Q is just record-keeping.
1099-R: If you got distributions from a pension, retirement plan, profit-sharing program, an IRA or an annuity, you might receive a 1099-R. (Remember, many retirement plans are tax-advantaged, so this form might be simple record-keeping on behalf of the IRS.) If you took a loan from your retirement plan, you might have to treat it as a distribution, which means it might be on this form, too, as well as permanent and total disability payments under life insurance contracts.
1099-S: Anyone responsible for closing a sale or an exchange of real estate furnishes this statement to you, reporting the proceeds. Again, the proceeds from the sale of your house or other real estate aren’t necessarily taxable, so do your homework.
1099-SA: This is the form you’ll receive if you took any distributions from your health savings account, Archer medical savings account or Medicare Advantage. HSA and Archer distributions generally aren't taxable if you use them to pay for qualified health expenses. So again, for many people, a 1099-SA is simply proof that the money left the account and went to you.
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NerdWallet rating- Federal: $69 to $129. Free version available for simple Form 1040 returns only.
- State: $0 to $59 per state.
- Expert help or full service filing is available with an upgrade to Live packages for a fee.
What is a 1099 employee?
The phrase "1099 employee" generally describes a person who, in the eyes of the IRS, is an independent contractor, also called self-employed or a freelancer. People who are considered 1099 workers are generally asked to fill out a W-9 at the start of a new work relationship or contract.
If you get a 1099-NEC from your employer, that's a sign that the company sees you as an independent contractor rather than an employee.
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