What Is a 1099 Tax Form Used For?
1099 tax forms are one of the many ways the IRS receives information about a person's income for the year. The amount paid is reported along with the payee's name, address and Social Security number. Failure to report all of the income listed on your 1099 forms can trigger an audit.
Function
The 1099 tax form reports money paid out to individual persons or other businesses during the tax year. This includes amounts paid to independent contractors who do not receive a W-2 from the company and payments to non-incorporated third-party vendors.
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Time Frame
1099 tax forms must be distributed to the payees before January 31st of the following year. The IRS copy of these forms must be filed by February 28th, along with a 1096 transmittal form listing the company's total payments for the year.
Size
Only payees who have received more than $600 during the calendar year must be given a 1099 tax form. Companies reporting more than 250 payments must file the 1096 and 1099s electronically.
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Types
The 1099-DIV form is used to report dividends paid during the tax year. Interest payments are reported on a 1099-INT. Pension and IRA distributions are reported on a 1099-R. All other types of payments are reported on a 1099-MISC tax form.
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Exceptions
Payments to a corporation are not required to be reported on a 1099 form.
1099 tax forms are one of the many ways the IRS receives information about a person's income for the year. The amount paid is reported along with the payee's name, address and Social Security number. Failure to report all of the income listed on your 1099 forms can trigger an audit.
Function
The 1099 tax form reports money paid out to individual persons or other businesses during the tax year. This includes amounts paid to independent contractors who do not receive a W-2 from the company and payments to non-incorporated third-party vendors.
State Tax Calculator Online
Time Frame
1099 tax forms must be distributed to the payees before January 31st of the following year. The IRS copy of these forms must be filed by February 28th, along with a 1096 transmittal form listing the company's total payments for the year.
Size
Only payees who have received more than $600 during the calendar year must be given a 1099 tax form. Companies reporting more than 250 payments must file the 1096 and 1099s electronically.
Alabama State Tax Extension
Types
The 1099-DIV form is used to report dividends paid during the tax year. Interest payments are reported on a 1099-INT. Pension and IRA distributions are reported on a 1099-R. All other types of payments are reported on a 1099-MISC tax form.
Online State Taxes
Exceptions
Payments to a corporation are not required to be reported on a 1099 form.