What Are All The IRS Form 1099 Types?
Published on October 22, 2024
by Clark Stott
Clark Stott has been with Expat Tax Online since 2015. Being a dual national based in the UK, Clark has unique experience helping US citizens (and Accidental Americans) become tax compliant via the Streamlined Tax Amnesty program. Clark likes to help Americans in the UK keep their tax situations as simple as possible to avoid harsh IRS treatment.
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Someone canceled my debt. How do I tell the IRS?
If a lender forgives or cancels debt of US$600 or more, the IRS usually considers this forgiven amount as income that needs to be reported on your taxes.
The lender will send you Form 1099-C, which reports how much debt was forgiven. You need to include this form when filing your tax return to let the IRS know about the canceled debt.
Why am I hearing about different kinds of Form 1099?
The IRS uses Form 1099 to track various kinds of income that aren’t tied to a regular job, like freelance work or interest from a bank account. Because people earn money in different ways, there are several versions of the form to cover each type of income.
You might hear about different 1099 forms because each one serves a specific purpose—whether you earned interest, got paid as a contractor, or had a debt canceled, there’s a form for that.
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It’s for American citizens that didn’t know they had to file U.S. tax returns each year, and have therefore fallen behind. Some more than 30 years! With the IRS Streamlined Procedure, say goodbye to overdue tax returns, late fees, and penalties.
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When do you need to file a Form 1099-INT?
Form 1099-INT is for reporting interest income from things like savings accounts or investments. If you earn more than US$10 in interest from your bank or other financial institutions, they will send you this form.
It shows how much interest you made, and you’ll need to report that amount when you file your taxes. Interest income is taxed just like regular income, so it’s important to include it when doing your tax return.
What is reported on Form 1099-K?
Form 1099-K is used to report payment transactions handled by third-party networks, such as PayPal, Stripe, or Venmo. These forms are sent to individuals or businesses that receive payments through these platforms.
If you have more than 200 transactions and the total payments exceed US$20,000, you will receive a 1099-K. This applies to freelancers, gig workers, or anyone receiving payments through third-party platforms.
How is Form 1099-MISC used today?
Form 1099-MISC is used to report different kinds of income that don’t fall under wages or salaries. It’s most commonly used to report payments like rent, legal settlements, and prizes if you received US$600 or more in a year.
If you receive royalties of US$10 or more, they’ll also be reported on this form.
Form 1099-MISC used to cover payments to independent contractors, but this is now done through Form 1099-NEC. So, if you receive income outside of a regular job that doesn’t fit into another category, you’ll likely receive a 1099-MISC form.
What are all the IRS Form 1099 Types?
Form 1099 Type |
Purpose |
1099-A |
Acquisition or Abandonment of Secured Property |
1099-B |
Proceeds from Broker and Barter Exchange Transactions |
1099-C |
Cancellation of Debt |
1099-CAP |
Changes in Corporate Control and Capital Structure |
1099-DIV |
Dividends and Distributions |
1099-G |
Certain Government Payments (e.g., unemployment compensation) |
1099-H |
Health Coverage Tax Credit (HCTC) Advance Payments |
1099-INT |
Interest Income |
1099-K |
Payment Card and Third Party Network Transactions |
1099-LS |
Reportable Life Insurance Sale |
1099-LTC |
Long-Term Care and Accelerated Death Benefits |
1099-MISC |
Miscellaneous Income |
1099-NEC |
Nonemployee Compensation |
1099-OID |
Original Issue Discount |
1099-PATR |
Taxable Distributions Received From Cooperatives |
1099-Q |
Payments from Qualified Education Programs (e.g., 529 plans) |
1099-QA |
Distributions from ABLE Accounts |
1099-R |
Distributions from Pensions, IRAs, Annuities, and Profit-Sharing Plans |
1099-S |
Proceeds from Real Estate Transactions |
1099-SA |
Distributions from Health Savings Accounts (HSAs) |
1099-SB |
Seller’s Investment in Life Insurance Contract |
What should I do if I don’t receive a 1099 form?
If you know you should get a 1099 form but don’t receive it, don’t worry—you’re still required to report the income.
First, reach out to the person or business that should send the form to see if there’s been a delay. If you can’t get the form, use your own records (like bank statements or payment receipts) to estimate the income and include it in your tax return.
It’s important to report all your income even if the form is missing, so you don’t run into issues with the IRS later. You can always ask a tax professional for help if you’re not sure how to report it correctly.
What happens if the information on my 1099 form is incorrect?
If the information on your 1099 form is wrong, such as the income amount or your name being incorrect, you need to contact the person or business who sent you the form as soon as possible.
They will issue a corrected 1099 form and send it both to you and the IRS. This is important because the IRS compares the information on your 1099 with your tax return.
If the details don’t match, you could face issues like delays in processing or even penalties.
Do I need to report income if it’s less than the minimum threshold for 1099?
Yes, you still need to report income even if it’s below the threshold that requires a 1099 form.
For example, if you earned less than US$600 from freelance work, the company that paid you might not send you a 1099 form.
However, you’re still required to report that income when filing your tax return, as the IRS requires you to report all income.
Can I deduct expenses related to 1099 income?
Yes, if you have expenses related to the income you earned through 1099 work (like freelancing or contracting), you can deduct them.
Common expenses include things like office supplies, travel costs, or even part of your rent if you use a home office.
To claim these deductions, you’ll need to keep good records of your expenses, such as receipts or invoices, and you’ll report them on your tax return. This can help lower your taxable income and reduce your tax bill.
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