IRS Form 1099

What is IRS form 1099?

IRS form 1099 reports income from self employment earnings, interest and dividends, government payments, and more. Form 1099 is a series of documents the Internal Revenue Service refers to as information returns. Form 1099 have different forms that report the various types of income a tax payer may receive throughout the year other than the salary the employer pays.

If you are a worker earning a salary or wage, your employer reports annual earnings at year-end on Form W-2. However, for those earnings as a self-employed or independent contractor , freelancer etc. you will receive Form 1099 MISC from each of your client.

When you own a stock investments of mutual funds, you will receive Form1099-DIV to report the dividends and other distributions that taxpayer receive during the year. For other investment that receive interest like cash in banks you will receive Form 1099-INT. Commonly it was receive from banks where you maintain your savings account.