Form 1099 is more than a form for tax filing

Of course the Internal Revenue Service has a number or name for every form you need to file with the IRS. Yet some form numbers have taken on a meaning onto themselves, 1099 is one of those forms. Workers who do not receive wages and salaries and tips, instead receive a form 1099 at the end of the year. That is why these independent contract workers are known by the form that is filed on their behalf, the 1099 form – so they are called “1099 Workers”.

Though we should not think the the 1099 from is limited to those who work on a contract basis. There are many other reasons to file a 1099 form other then for people who need to fill in Box number 7 for nonemployee compensation. There are such simple transactions as receiving interest from a bank or dividends from a public company or perhaps selling a stock on Wall Street. Many of of our newly unemployed people who lost their jobs will be receiving a 1099 Form for the unemployment compensation they received.

Different 1099 Form's

So do all these different people who get a 1099 receive the same form from the company, governmental unit or person who gave them money? No – each different form of income mentioned in the prior paragraph has a different 1099 from associated with it. The independent contract worker will receive a 1099-Misc – this stands fro miscellaneous income. As opposed to other forms that are more specific for particular forms of income. The individual or business that receives interest income from the bank will get a 1099-Int from their bank. The 1099-Int from can also be filed by an individual who pays another interest.

Form 1099 for Dividends – 1099-Div

When a company pays out a dividend to its shareholders it will file a 1099-Div at the end of the year. Often the broker who is holding the stocks for the investor will remit the 1099-Div form at the end of the year for many dividends received over the year incrementally and from different companies.

Form 1099 from the government – 1099-G

When you get a tax refund or receive unemployment compensation you will get a Form 1099-G from the government. Whereas wages are almost always net of withholding taxes unemployment is generally payed out gross. This is why one who is receiving a substantial amount of unemployment pay should be careful to make sure they have paid in enough taxes. Tax refunds can be taxable if they where used as an itemized deductions in the prior year.

Here are some other 1099 forms and what they mean:

1099-A - Acquisition or abandonment of Secured Property

1099-B - Proceeds from Broker and Barter Exchange Transactions

1099-C - Cancellation of Debt

1099-H - Health Insurance Advance Payments

1099-LTC – Long Term Care Benefits

1099-OID – Original Issue Discount

1099-R - Distributions from Pensions, Annuities, Retirement Plans, IRAs or Insurance Contracts

1099 Form filing with Form 1096

At the end of the year when the 1099 forms are filed they need to be sent to the IRS with a transmittal form called a 1096. This from has totals of all the 1099 forms filed from the payer. If they are remitting more than 250 forms they will be required to file electronically with the Internal Revenue Service. In previous years 1099 Forms where required to be printed in pink so they would be easy to be scanned instead of utilizing data entry.

Further instructions about the 1099 form can be foud at the IRS and through reading the associated publications from the IRS. The relevant publications are publications 1141, 1167 and 1179.