The Many Varieties of 1099s

There are many types of 1099s, depending on the type of income earned during the tax year. As of 2022, there are 20 varieties of 1099 forms, and listed below are several of the most popular.

• 1099-INT

  A 1099-INT is sent to taxpayers if they earned more than $10 worth of interest in the tax year. Banks, brokerage firms, and other investment firms typically send out a 1099–INT.

  

• 1099-DIV

  A 1099-DIV is typically sent to a taxpayer if dividend income was earned throughout the tax year. Dividends are usually in the form of cash payments paid to investors by corporations as a reward for owning their stock or equity shares.
  

• 1099-G

  A 1099-G is sent to those who receive money from the federal, state, and local governments. For example, taxpayers who received a local tax refund or unemployment benefits would likely receive a 1099-G.
  

• 1099-R

  A 1099-R is issued if a taxpayer receives a distribution or payout from a pension, retirement plan, or individual retirement account (IRA). Also, certain annuities and life insurance contracts may issue a 1099-R. However, not all retirement distributions are taxable, and a tax professional should be consulted if you're unsure whether you should pay taxes on a distribution.
  

• 1099-B

  A 1099-B is sent to a taxpayer listing the various transactions from a broker, such as the sale of stocks, commodities, and other securities. Also, some types of bartering transactions executed through a barter exchange would be listed and reported on a 1099–B form.
  

• 1099-S

  A 1099-S is issued to taxpayers for real estate transactions if they have closed a sale or an exchange during the tax year. Some examples of real estate transactions could be realizing gains or proceeds from the sale of land, commercial and industrial buildings, and residential properties, such as a home or condominium.
  

• 1099-MISC

  A 1099–MISC is typically issued for income that falls outside the other 1099 forms. For example, some types of non-employment income are reported on a 1099–MISC, such as money received from prizes or awards.
  

• 1099-NEC

  The IRS has made changes to its reporting requirements for non-employee compensation. Beginning in the 2020 tax year, businesses must report some types of non-employee compensation on Form 1099–NEC. In the past, form 1099-MISC was used.

  Form 1099-NEC must be filed if a business paid a non-employee $600 or more in the tax year. A non-employee might be an independent contractor or any person hired on a contract basis to complete work, such as a graphic designer, writer, or web developer.

  Self-employed taxpayers who performed freelance work or had a side gig that earned more than $600 in income may receive a 1099–NEC form. However, non-employee income could also include fees, benefits, commissions, and royalties. Payments to an attorney that exceeded $600 for the tax year must be reported on a 1099-NEC.

  Although self-employed taxpayers who earn less than $600 may not receive a 1099–NEC, they still must report all income when filing their taxes. A copy of the 1099-NEC form and the instructions are located on the IRS website.