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
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
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
1099-B - Proceeds from Broker and Barter Exchange
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.