A Form 1099 is a tax form used to report various types of income received during the year that is not from wages, salaries, or tips (which are reported on a W-2 form). There are several different types of 1099 forms, each used for a specific type of income, such as interest income (1099-INT), dividend income (1099-DIV), income from rental properties (1099-MISC) or income to a contractor or vendor (1099-NEC). As a general rule, if you are a U.S. person, including a resident alien, you must file a Form 1099-NEC or 1099-MISC, for each person to whom you have paid during the year:
at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
at least $600 in:
rents;
services performed by someone who is not your employee;
prizes and awards;
other income payments;
medical and health care payments;
payments to an attorney
Form 1099's must be filed by January 31st of the year following the year in which the payments were made.
Not sure if you need to issue a Form 1099 to vendors or subcontractors, reach out to an accountant near you and we'll help you decide if you do.
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