What are 1099s?

While most taxpayers are accustomed to receiving a W-2 from their employer, many people also receive 1099s.

A 1099 is a form that potentially reports income from a wide variety of sources. The source is indicated by the suffix attached to the 1099.

Here is a list of the most common 1099s and the income they represent. Please note, this is not an exhaustive list.

1099-NEC: Nonemployment Compensation

1099-MISC: Miscellaneous Payments

1099-B: Proceeds from Brokers (stocks and crypto)

1099-DIV: Dividends

1099-INT: Interest

1099-C: Cancellation of Debt

1099-G: Government Payments (Usually unemployment)

1099-K: Third Party Transactions (money apps)

1099-R: Retirement Income

1099-SA: Distributions from HSA or MSA

As stated earlier, this is not a list of ALL 1099 forms, just the most common.

You may also recieve other income documents like a 1098 or a K-1.

For assistance with these often complicated form, feel free to contact us at Marcellus Tax Planning for a further explanation.