Monday, 17 March 2014

What Is A Form 1099 Used For?

A Form 1099 is considered an information return by the United States Internal Revenue Service. It's used to report income earned in each calendar year for tax purposes. There are 13 different types of 1099 forms used for a variety of information reporting requirements. Employers and employees must furnish these forms to the IRS.
1099-MISC
The 1099-MISC reports miscellaneous income, which includes freelance work, nonemployee fees, rents, director's fees, royalties and attorney's fees, as well as direct sales of $5,000 or more of consumer goods for resale.
1099-G
A 1099-G is used to report certain government and qualified state tuition program payments. These items include unemployment benefits, taxable grants, and state and local income tax refunds.
1099-B
A 1099-B reports proceeds from broker and barter exchange transactions, which include sales or redemptions of securities or commodities.
1099-DIV
A 1099-DIV reports distributions and dividends, such as capital gain and nontaxable dividends that were paid on stock.
1099-S
Gross profit from the sale or exchange of real estate must be reported on Form 1099-S.
1099-INT

Any interest earned during the year must be reported on a Form 1099-INT.

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