The 1099 form is one of a set of papers known as “information returns” by the Internal Revenue Service (IRS). There are several different 1099 forms that record various sorts of payments you may get during the year that are not paid to you by a firm.

irs form 1099

What is an IRS 1099 Form?

The IRS 1099 Form is a collection of tax forms that reflect various sorts of payments made by an individual or business that is not normally your employer. The payer completes the form with the necessary information and submits it to you and the IRS,
documenting payments made during the tax year. In some cases, you must additionally send a copy to your state’s taxes authorities. The payer is responsible for completing and submitting the required 1099 tax form to you. Rental income,
earnings as a freelancer or independent contractor, a tax return from your state or municipality, casino wins, and other types of payments are examples of such payments. The majority of 1099 forms must be given by January 31, but in certain instances, this date is February 15.

Examples of when you may receive a 1099 Form
Some possible scenarios in which you could obtain a 1099 include:

  • You should receive a Form 1099-NEC if you received $600 or more in non-employee remuneration from a person or corporation who isn’t your usual employer.
  • You should get Form 1099-MISC if you received $600 or more in rent or royalty payments.
  • You should expect to get Form 1099-G if you got a state or local tax refund in the prior year.
  • Similarly, if you paid a freelancer, independent contractor, or other non-employee $600 or more linked to your trade or business throughout the year, you must give them a Form 1099-NEC.

THE KEY TAKEAWAYS:

Form 1099 is a group of forms used to record payments that aren’t normally from an employment.

A 1099 form reports a range of revenues, including independent contractor income, but also payments such as gaming winnings, rent or royalties, profits and losses in brokerage accounts, dividend and interest income, and more. If you operate as an independent contractor or freelancer, your earnings will frequently be recorded on a 1099 form. The majority of your 1099 papers should arrive by January 31 of each year to reflect the previous year’s payments to you.

WHO IS IN CHARGE OF SENDING 1099 FORMS?
There are several types of 1099 forms available to record payments made between an individual or corporation and another party. Because 1099 forms are used to report income, many persons may receive several 1099 forms for various reasons. For example, if you are an independent contractor or freelancer, you may get a Form 1099-NEC from a specific payer detailing payments made to you during the year.
These payments should be included on the form if they are $600 or more, the amount that requires a payer to submit a Form 1099-NEC. Payments of less than $600 do not necessitate the filing of a 1099, though the payer may choose to do so.

WHEN SHOULD YOU EXPECT TO RECEIVE OR SEND 1099S?

Varied types of 1099 forms have different due dates. For example, if you’re an independent contractor or freelancer, Form 1099-NEC, which is used to record payments to you, is due by January 31st. If January 31st is not a business day, the
deadline is moved until the next business day.

If you are the one who is submitting 1099 forms, the 1099-NEC form must be received by the receiver before January 31st.

If you’re shipping a paper form to the IRS, the 1099-NEC must be received by February 28. (postmarked by that date).

If you use tax software, to submit the form to the IRS, we’ll import the information for you, and you have until March 31 to e-file it, which means e-filing a return gives you more time to prepare the form than mailing a paper form.

Payers must give you these documents early in the tax season so that you have enough time to file your tax return and the IRS has documentation of how much money you made throughout the tax year.

Despite the early deadlines for mailing these documents as a payer, you will not be required to file your personal tax return until the tax filing deadline. The earlier due dates for sending 1099s to the IRS make it easier for them to discover refund fraud by validating income that individuals claim on their tax forms. All 1099s must be filed with the IRS by the 28th of February if mailed, or the 31st of March if e-filed.

1099 NEC and1099 MISC are the two most common 1099 forms.

1099-NEC: Compensation for Non-Employees

Non-employee remuneration, or money obtained as an independent contractor, freelancer, or self-employed individual, must be reported.

DUE TO RECIPIENT: The 31st of January (or February 15 if substitute dividends and tax-exempt interest payments reportable by brokers or gross proceeds paid to attorneys)

DUE DATE WITH THE IRS: The 28th of February (or March 31 if filed electronically)
For instance, you may have received rent payments for a property that you lease.

The 1099-NEC vs. the 1099-MISC
Prior to the 2020 tax year, you dealt largely with Form-1099 MISC for reporting nonemployee remuneration as a business owner who employed contractors. Starting in 2020, the IRS will reintroduce the 1099-NEC Form as the new means to report self-employment income, replacing the Form 1099-MISC that had previously been utilized. This was done to assist explain that non-employee remuneration has a different reporting date than other payments that use Form 1099-MISC.

Remuneration obtained for services provided without being classified as an employee is considered nonemployee compensation. Employees, on the other hand, often have their pay recorded on a Form W-2.

Form 1099-NEC now reports non-employee remuneration, although Form 1099-MISC continues to be used to report other forms of miscellaneous income.

WHAT SHOULD YOU DO IF YOU DO NOT RECEIVE ALL OF YOUR 1099 FORMS?

Even if you lack the necessary papers, you are still liable for paying the taxes you owe. If you did not get a 1099, you must still record the income received on your tax return to avoid receiving a bill from the IRS for unpaid taxes. If you haven’t gotten all of your 1099s by the January 31st or February 15th deadlines, contact the person or firm who sent them to you. So that you can file your tax return
on time, request that they provide you a copy of your 1099.