A 1099 form is an IRS information return that reports money you received that was not a regular paycheck. Banks, brokers, clients and payment apps send them to you and the IRS each year, usually by January 31 or mid-February. You use them to report that income on your tax return, even if no tax was withheld.
The most common 1099 forms
| Form | What it reports | Typical sender |
|---|---|---|
| 1099-NEC | Pay for freelance or contract work | Clients |
| 1099-MISC | Rent, prizes, royalties, other income | Businesses, landlords’ tenants |
| 1099-K | Payments through apps and card processors | PayPal, Venmo, Stripe, marketplaces |
| 1099-INT | Interest | Banks, savings accounts, CDs |
| 1099-DIV | Dividends and fund distributions | Brokers, funds |
| 1099-B | Sales of stocks, funds and other assets | Brokers |
| 1099-R | Retirement account and pension payouts | 401(k) plans, IRAs |
| 1099-G | Unemployment, state tax refunds | Government agencies |
Reporting thresholds
- 1099-NEC and 1099-MISC: the threshold rose from $600 to $2,000 for payments made from 2026 under the 2025 tax law.
- 1099-K: payment apps report when you receive over $20,000 and more than 200 transactions in a year.
- 1099-INT and 1099-DIV: generally $10 or more.
Important: these are reporting thresholds, not tax thresholds. All taxable income counts, even if you never get a form.
1099 vs W-2
A W-2 comes from an employer that withholds income tax, Social Security and Medicare from each paycheck. With 1099 contract income, nothing is withheld, so you pay income tax plus 15.3% self-employment tax yourself. If you expect to owe $1,000 or more, the IRS expects quarterly estimated payments.
What to do when you get a 1099
- Check it against your own records. Ask the sender to correct any mistake.
- Report it on the right part of your return: Schedule C for business income, Schedule B for interest and dividends, Form 8949 for sales.
- Deduct business costs against freelance income to lower your tax.
- Keep it with your tax records for at least three years.
Selling investments? Our capital gains tax calculator estimates the tax, and our guide to filing your taxes for free lists free software that handles 1099s.
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Frequently asked questions
What if I did not get a 1099?
You still have to report the income. Use your own records, bank statements or invoices.
Do I get a 1099-K for selling personal items at a loss?
You might, but selling personal items for less than you paid is not taxable income. Keep proof of what you paid.
Is a 1099 the same as being self-employed?
A 1099-NEC usually means you were paid as an independent contractor, which the IRS treats as self-employment.
This article is general information, not financial or tax advice.
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