Diving into a variety of 1099’s

You might be surprised to know that there are almost 20 different 1099 forms you can receive for many different reasons. As a Taxpayer most of the time you are unaware of forms you should be getting for your tax preparation and end up filling an amendment form later down the road because you didn’t know one 1099 was on the way.

In order to avoid future headaches, let’s dive into IRS’s 1099 forms and under what circumstances you should receive one.

1. 1099-A Acquisition or Abandonment of Secured Property, lend money related to your business trade, use the borrower’s property to secure your loaned money and/or acquire an interest in property to satisfy the debt part of the lending agreement.
2. 1099-B Proceeds from Broker and Barter Exchange transactions, received cash for Stock sales, and or you exchange any property or service through a barter exchange.
3. 1099-C, Cancellation of Debt, received over $600 in debt cancellation or forgiveness.
4. 1099-CAP Changes in Corporate Control and Capital Structure, you are a shareholder of a corporation that acquired or it underwent a substantial change in capital structure or received cash, stock, or other property from an acquisition of control or a substantial change in capital structure.
5. 1099-DIV Dividends and Distributions, received any dividends or distributions from a bank or financial institution.
6. 1099-G Certain Government Payments, received any payment from a federal, state or local government because of Unemployment compensation, State or local income tax refunds or credits, reemployment trade adjustment, for taxable grants or agricultural payments.
7. 1099-H Health Coverage Tax Credit (HCTC) Advance Payments, received any advance payments during the calendar year of qualified health insurance payments for the benefit of eligible trade adjustment assistance (TAA), Reemployment TAA, or Pension Benefit Guaranty Corporation (PBGC) pension recipients and their qualifying family members.
8. 1099-INT Interest Income, you got paid more than $10 or more in interest income, withheld and paid foreign tax on interest and Withheld and did not refund federal income tax under the backup withholding rules, regardless of the amount.
9. 1099-K Payment Card and Third Party Network Transactions, issued by Payment settlement entities (PSE’s) if you received any card payments (e.g., debit, credit or stored-value cards).
10. 1099-LTC Long Term Care and Accelerated Death Benefits, if you pay any long-term care benefits, including accelerated death benefits. Payers include insurance companies, governmental units, and viatical settlement providers.
11. 1099-MISC Miscellaneous Income, when received at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest or at least $600 in rent, prizes and awards, other income payments, medica; and healthcare payments, Crop insurance proceeds, cash payment received for fish (or other aquatic life), cash received from a notional principal contract to an individual, partnership, or estate, received payment for Legal services.
12. 1099-NEC Non-employee Compensation, received compensation when providing services as a contractor.
13. 1099-PATR taxable Distributions Received From Cooperatives, when received at least $10 in patronage dividends or other qualifying distributions or Have federal income tax under backup withholding rules withheld on any amount
14. 1099-OID Original Issue Discount, Original issue discount (OID) of $10 or more included in your gross income, had Foreign tax withheld and paid on OID and Federal income tax under backup withholding rules withheld on any amount of OID.
15. 1099-Q Payments from Qualified Education Programs, when received distribution from a qualified tuition program (QTP)
16. 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc, when contributed $10 or more in Profit-sharing or retirement plans, IRAs, Annuities, pensions, insurance contracts, survivor income benefit plans, Permanent and total disability payments under life insurance and/or Charitable gift annuities.
17. 1099-S Proceeds from Real Estate Transactions, if had any gain on sale or exchange of real estate. Examples of real estate include commercial buildings and timber royalties.
18. 1099-SA Distributions From an HSA, Archer MSA, or Medicare Advantage MSA, when received any distributions from HSA and MSA.

When in doubt it is always best to check the IRS website or contact a Tax Professional, remember that by not reporting the correct amount of income you are most likely going to end up stressed and with interest and penalties. Schedule a 15 min call for Tax Preparation with us or contact us at [email protected]