Beginning with tax year 2020, use Form 1099-NEC to report nonemployee compensation. (Previously Box 7 on 1099-MISC)

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eFileMyForms Article - When to File a 1099 Form

The 1099 form is a tax form used to report income to the Internal Revenue Service. However, it is up to the entity who is paying out the monies to submit this form. It is used specifically to report income from unusual sources from sources other than a wage-paying job. Often people have income a little bit here and there or a big chunk all at once and they wonder whether the entity paying them is going to file a 1099 form. Businesses need to know when this form should be used.

Some common situations that would require use of a 1099 form are:

  • Income / Dividends from an investment, such as a mutual fund
  • Proceeds from the sale of real estate
  • A death benefit paid to a spouse or a family
  • Fees paid for contract work or freelance work (if the amount paid is under $600, the 1099 is not required)

There are also some lesser-known instances in which a 1099 form should be used. As we all know ignorance is no excuse when it comes to the IRS. It is up to each business owner to know the laws and guidelines of all tax reporting. The eFileMyForms website provides a library of articles to help you learn about tax laws and requirements, and stay abreast of changes.

Here are additional situations that require submission of a 1099 form. As you can see they each have their own unique extension:

  • 1099-A: acquisition or Abandonment of Secured Property
  • 1099-B: Proceeds from Broker and Barter Exchange Transactions
  • 1099-C: Cancellation of Debt
  • 1099-MISC: Miscellaneous Income
  • 1099-OID: Original Issue Discount
  • 1099-CAP: Changes in Corporate Control and Capital Structure
  • 1099-DIV: Dividends and Distributions
  • 1099-G: Government Payments
  • 1099-H: Health Insurance Advance Payments
  • 1099-INT: Interest Income
  • 1099-LTC: Long Term Care Benefits
  • 1099-PATR: Taxable Distributions Received From Cooperatives
  • 1099-Q: Payment from Qualified Education Programs
  • 1099-R: Distributions from Pensions, Annuities, Retirement Plans, IRAs, or Insurance Contracts
  • SSA-1099: Social Security Benefit Statement
  • SSA-1042S: Social Security Benefit Statement to Nonresident Aliens
  • 1099-S: Proceeds from Real Estate Transactions
  • 1099-SA: Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
  • 1042-S: Foreign Person's U.S. Source Income
  • RRB-1099: Payments by the Railroad Retirement Board
  • RRB-1099R: Pension and Annuity Income by the Railroad Retirement Board
  • RRB-1042S: Payments by the Railroad Retirement Board to Nonresident Aliens
  • W-2G: Certain Gambling Winnings

The list above was excerpted from the website.

When you submit a 1099 to the IRS, the person who received the income must be mailed a copy. The 1099 forms that your business supplies to the IRS are also used by your contractors your freelancers to complete their tax returns. With all the different reasons why you would need to submit a 1099, it can be a daunting task. This is why eFileMyForms was created, to make the filing of one or 100 tax forms a faster and simpler process. After years of doing nothing but electronic filing for taxpayers, the eFileMyForms team has honed the process to the leanest and meanest that it's ever been.

Read about our easy four step process for electronically filing any and all tax forms here. is a 1099 Pro LLC Service
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