The 1099 form is the Internal Revenue Service’s tax form used for independent contractors and investors to report income, whether from work or from investments. It is filled out by clients, banks, and companies invested in. Income reported on the 1099 does not have taxes taken out of it. There are several forms of the 1099, based on the type of earning. The 1099-DIV reports stock dividends. The 1099-INT reports interest income. Form 1099-B reports earnings from the sale or redemption of securities. Form 1099-R reports distributions from retirement or profit-sharing plans. The form is sent both to the taxpayer and to the IRS. Any amounts reported on the 1099 must be reported on the individual’s tax returns as well. |
