Forms 1099 are used to report on U.S. persons who are receiving certain types of income, such as interest, royalties, and dividends. Unlike the Form 1042-S, the form used to report on non-U.S. persons receiving U.S. source income, there are many different types of Forms 1099.
Let’s take a look at the different types below:
Form 1099-A
Form 1099-A is used to report acquisition or abandonment of secured property, such as when a home is foreclosed on or sold. This form includes information such as the date of the acquisition or abandonment, the fair market value of the property, and any tax implications that may result from the acquisition or abandonment.
Form 1099-B
Form 1099-B is used to report proceeds from the sale of investments, such as stocks or bonds. This form includes information such as the date of sale, the sale price, and any capital gains or losses that occurred.
Form 1099-C
Form 1099-C is used to report cancellation of debt income, such as when a debt is forgiven or discharged. This form includes information such as the amount of the cancellation, the date of the cancellation, and any tax implications that may result from the cancellation.
Form 1099-DIV
Form 1099-DIV is used to report any dividends and other distributions on investments. This includes income from corporations, mutual funds, real estate investment trusts, and other investment vehicles. This form also includes capital gains distributions, which are when a company pays out a portion of its profits to shareholders.
Form 1099-G
Form 1099-G is used to report certain government payments, such as unemployment compensation, state and local income tax refunds, and agricultural payments. This form includes information such as the amount of the payment, the date of the payment, and any tax implications that may result from the payment.
Form 1099-INT
Form 1099-INT is used to report all types of interest income. This includes income from interest-bearing accounts such as savings accounts, money markets, and certificates of deposit, as well as interest income from bonds and other investments. This form is also used to report interest income from tax-exempt organizations and state and local governments.
Form 1099-K
Form 1099-K is used to report payments from credit card transactions and third-party network transactions. This form includes information such as the total amount of payments, the total amount of gross sales, and the total amount of returns.
Form 1099-MISC
Form 1099-MISC is used to report miscellaneous income, such as royalties and rents. This form was also previously used to report income from non-employee compensation, such as fees paid to independent contractors or self-employed individuals, but that type of income is now reported on the Form 1099-NEC. The Form 1099-MISC is also used to report income from prizes and awards, such as scholarship awards and lottery winnings.
Form 1099 – NEC
Form 1099-NEC is used to report non-employee compensation, such as payments to independent contractors or self-employed individuals. This form includes information such as the amount of the payment, the date of the payment, and any tax implications that may result from the payment.
Form 1099-R
Form 1099-R is used to report distributions from retirement plans, such as IRA and 401(k) accounts. This form includes information such as the amount of the distribution and the taxable amount.
Form 1099 – S
Form 1099-S is used to report proceeds from real estate transactions, such as the sale of a home or other real estate. This form includes information such as the date of sale, the sale price, and any capital gains or losses that occurred.
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