- January 9, 2022
Form 1099 is a tax form from the Internal Revenue Service that helps in reporting incomes that people earn, and were not reported in the wages and salary slips from their main employer. There are a number of variations in the 1099 Forms and each one of them will be used to report a different type of income. Individual tax filers need not use 1099 Forms, and these are generally used by employers, banks, and other financial institutions. They will send the 1099 Forms to the individual recipients by January 31st.
The Forms can be sent either electronically via mail or sent to the recipients through the post. Some 1099 Forms, such as 1099- B, 1099- S, and 1099- MISC will be sent by February 15th. People who have high investment income, brokerage accounts, capital gains and having investments in mutual funds, etc., will receive consolidated 1099s by February 15th.
Purpose of 1099 Forms
The 1099 Forms are used to report non-employee compensation to the IRS. The businesses are required to issue the 1099 Form to their contractors, who have received atleast $600 or more during the tax year. The purpose of the 1099 Forms is to help the US taxpayers report all their income so that the revenue service can collect appropriate taxes from them. Simply receiving the tax form doesn’t qualify the person to pay the taxes, and it only means that the individual owes taxes on the income they received. It is used to report the consolidated income for the year with the IRS and tax deductions as allowed by the state will be included in these Forms.
Who must File 1099 Forms?
The 1099 Forms are a record of income. The 1099 Forms are considered to be information return Forms and they are not filed by individual taxpayers. Small businesses that hire freelancers for contractual work, banks, and financial institutions that pay interests and dividends will fill the 1099 Forms and send them to their payees by January 31st.
When will you get Form 1099?
You will receive 1099 INT, DIV, and 1099-R if you have received $10 or more as income and you will receive 1099 MISC and NEC forms if you received $600 from your independent contractual work. If you have received less income than your threshold, you will not receive Form 1099 from the individual entity, but you still have to report your income on the tax return. If you didn’t get Form 1099, you can reach out to the sender. If you require previous years’ tax return papers. You can request a free copy of the same with the IRS.
Deadline/Duedate for filing Form 1099:
| Type of 1099 Form | Filing due date |
| Form 1099 NEC | January 31st |
| Form 1099 MISC | Recipient Copy January 31st,
IRS e-file March 31st Paper Filing February 28 |
| Form 1099 DIV | Efile March 31st
Paper filing Feb 28th |
| Form 1099 INT | Efile March 31st
Paper filing Feb 28th |
| Form 1099 R and K | Efile March 31st
Paper filing Feb 28th |
