The 1099 form is used to report non-employment income to the Internal Revenue Service (IRS). Businesses are typically required to issue a 1099 form to a taxpayer (other than a corporation) who has received at least $600 or more in non-employment income during the tax year. A taxpayer might receive a 1099 form if they received dividends which are cash payments paid to investors for owning a company's stock.<\/p>" } } , { "@type": "Question", "name": "Do I Have to Pay Taxes on a 1099 Form?", "acceptedAnswer": { "@type": "Answer", "text": "
Income that's been reported on a 1099 is typically taxable but many exceptions and offsets can reduce taxable income. Let's say a taxpayer has a gain from the sale of a home because the selling price was higher than the original cost basis. The taxpayer might not owe taxes on that gain because they may qualify for an exclusion of up to $250,000 of this money depending on their tax situation.<\/span><\/p> It's best to consult a tax professional if you're unsure whether you have to pay taxes on your 1099 income.<\/p>"
}
}
,
{
"@type": "Question",
"name": "Who Should Receive a 1099 Form?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Anyone who was paid $600 or more in non-employment income should typically receive a 1099 but there are many types of 1099s for various situations. There are also many exceptions to the $600 rule. You may receive a 1099 even if you were paid less than $600 in non-employment income during the tax year.<\/p>"
}
}
,
{
"@type": "Question",
"name": "Do I Need a 1099 Form to File Taxes?",
"acceptedAnswer": {
"@type": "Answer",
"text": " Taxpayers must report all sources of income even if they don't receive their corresponding 1099 form. They don't have to send their 1099 forms to the IRS when they file their taxes, however. The IRS receives its own copy of the 1099 from the issuer or payer and it includes the taxpayer's Social Security number.<\/p>"
}
}
,
{
"@type": "Question",
"name": "What's the Difference Between a 1099 and a W-2?",
"acceptedAnswer": {
"@type": "Answer",
"text": " A 1099 form shows non-employment income such as income earned by freelancers and independent contractors. Form W-2 shows the annual wages or employment income that a taxpayer earned from an employer during the tax year. A W-2 shows the taxes withheld by the employer from the employee's salary throughout the year, unlike a 1099.<\/p>"
}
}
]
} ] }
]