1099 Services

1099 Services

What is an IRS 1099 form?

  • A 1099 form is used to report non-employment income, including dividends paid from owning a stock or income that you earned as an independent contractor. There are a variety of 1099 forms since there are many types of income, including interest income, local tax refunds, and retirement account payouts.
  • A 1099 form is a record that an entity or person other than your employer gave or paid you money. The payer fills out the 1099 form and sends copies to you and the IRS. There are several kinds of 1099 forms.
  • A 1099 is thus not the same as a W-2, which reports income paid to employees. If you get a 1099 from your employer, that’s a sign that your employer sees you as an independent contractor rather than an employee. Workplaces aren’t the only entities that may send you a 1099, though.
  • Form 1099-NEC is used to report non-employee compensation of $600 or more for the year, to the IRS and the recipient. … The compensation being reported must be for services for a trade or business. Non-employee compensation was previously included on the 1099-MISC form before the 2020 tax year.

What is a 1099 form used for?

  • You use your IRS Form 1099s to figure out how much income you received during the year and what kind of income it was. You’ll report that income in different places on your tax return, depending on what kind of income it was.