A 1099 form is an IRS information return that reports income you received from sources other than a regular employer. If you are a full-time employee, your employer sends you a W-2. But for freelance income, investment income, retirement distributions, rental income, and dozens of other payment types, the payer sends a 1099. You use the information on the 1099 to report that income on your tax return. The IRS also receives a copy directly from the payer — meaning they know about the income whether or not you report it.
The Most Common 1099 Forms
1099-NEC (Non-Employee Compensation)
This is the form freelancers, independent contractors, and gig workers receive. Businesses issue a 1099-NEC to anyone they paid $600 or more during the year for services (other than employees). If you earned $1,500 doing graphic design for a company, they send you a 1099-NEC showing $1,500. This income is subject to both income tax and self-employment tax (15.3% on net earnings up to the Social Security wage base).
Important: you must report this income even if you do not receive a 1099-NEC. The threshold for issuance is $600, but there is no threshold below which the income is non-taxable.
1099-MISC (Miscellaneous Income)
Previously the catch-all for non-employee compensation, 1099-MISC now covers other types of miscellaneous payments: rent paid to a landlord, prizes and awards, royalties ($10 or more), attorney payments, and crop insurance proceeds. If a company paid you $800 in rent or $1,200 in royalties, they send a 1099-MISC.
1099-INT (Interest Income)
Banks and financial institutions send this form if they paid you $10 or more in interest during the year. This includes interest from savings accounts, CDs, money market accounts, and bonds. The amount goes on Schedule B of your tax return and is taxed as ordinary income.
1099-DIV (Dividends)
Brokerage firms send this when your investments paid $10 or more in dividends or capital gain distributions. Box 1a shows ordinary dividends; Box 1b shows qualified dividends, which are taxed at the lower long-term capital gains rate (0%, 15%, or 20% depending on your income). Ordinary dividends are taxed at your regular income rate.
1099-B (Proceeds from Broker and Barter Exchange Transactions)
Your broker sends this for each sale of stocks, bonds, mutual fund shares, or other investments during the year. It shows the proceeds, the cost basis, and whether the gain or loss is short-term or long-term. You use this to complete Schedule D and Form 8949 on your return. The 1099-B can be many pages for active traders.
1099-R (Distributions from Pensions, Annuities, IRAs)
You receive a 1099-R for any distribution from a retirement account, including 401(k)s, IRAs, pensions, and annuities. Box 1 shows the gross distribution; Box 2a shows the taxable amount; Box 7 contains a distribution code that tells the IRS the nature of the distribution (regular distribution, early withdrawal, rollover, etc.). If you completed a rollover, the taxable amount should be $0 and the code should indicate a rollover.
1099-G (Government Payments)
Issued for unemployment compensation (taxable as ordinary income), state tax refunds (taxable if you itemized in the prior year), and certain other government payments.
1099-S (Proceeds from Real Estate Transactions)
Issued when you sell real estate. The proceeds are reported here and must be reconciled with your cost basis to determine gain or loss. Note that gain from selling your primary residence may be excluded (up to $250,000 for single filers, $500,000 for married filing jointly) if you owned and lived in the home for 2 of the 5 years before the sale.
When Do 1099s Arrive?
Most 1099 forms must be sent to you by January 31. Brokerage 1099s (1099-B, 1099-DIV, 1099-INT) often arrive in mid-February and can be corrected as late as March — meaning you may receive an amended 1099 after you’ve already filed. If this happens, you may need to file an amended return (Form 1040-X).
What If You Disagree With the Amount on a 1099?
Contact the issuer directly and request a corrected form (1099-C notation). If they refuse and you believe the amount is wrong, report the income on your return but include a note explaining the discrepancy. Never simply ignore a 1099 — the IRS will match it against your return and flag any unmatched amounts for a notice or audit.
Bottom Line
Collect every 1099 you receive and match them against your records before filing. Report all the income shown — the IRS has the same information. If you are self-employed and receive 1099-NEC forms, also track your business expenses throughout the year, because deductible business expenses reduce the taxable self-employment income reported on the 1099.