What is a Form 1099

What is a Form 1099

Welcome to tax teach today I want to Talk about what a form 1099 is since It's a common tax form that many Taxpayers Receive a form 1099 is a tax document You receive that highlights kinds of Income that aren't really employment Related when you think employment Related income usually get a form W2 From your employer highlighting the Amount of income you made throughout the Tax year related to having a job at that Company a$ 1099 relat income that is Isn't that kind of income it's income Like investment income think interest Dividends that kind of income you might Receive a $10.99 if you have freelance Work if you're a freelancer um you might Receive A1099 if you have rental income and A1099 like I said is a tax document that You receive the highlights the amount of Income made throughout the tax year Related to that activity at $199 get Sent to you but it also gets sent to the IRS so if you don't report that income On your tax return the IRS is going to Know because they have a copy of that $199 in the amount of income made Through that activity now there are a Variety of different 109 form 1099s and I'll go over a couple common Ones right now the first kind of form 1099 I want to talk about is form 1099

Int form $10.99 int summarizes the Amount of interest income you made Throughout the tax year and this form Normally comes from your bank right so If you have savings accounts checking Accounts other kind of accounts with a Bank you make interest on that Throughout the year and the bank sends You that form $199 letting you know how Much interest you made in that tax year And this income will then flow to your 1040 right your return and you'll report That online Tob of your form 1040 for an Individual so that's the first form 1099 I want to talk about the form 1099 int Which is which summarizes the amount of Interest you made throughout the tax Year the next kind of form 1099 I want To talk about is form 1099 B this is a Form 1099 that you receive from your Brokerage firm I think you know Weeble Uh Charles swab fidelity Robin Hood These kind of Institutions where if you Have an account with them and you sell Buy trade you know trade stocks on your Account there might be activities that You'll have to report on your tax return Think capital gains Capital losses Related to um if you made or lost money On trading Stocks now that that kind of information Will need to be summarized on your form 1040 uh typically on your schedule D's Where you'll see that information maybe

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On your form 8949 so the 1099 B is the form you Received to highlight the brokerage firm And the trading activity you have on That brokerage firm's account if you are A freelancer or a independent contractor You should expect to receive a form 1099 NEC and this form will summarize the Amount of income that you made with a Certain through a certain company so if You work with a V various different Companies if they normally if they give You more than $600 worth of income you Should expect to receive a form 1099 NEC From each of those companies now once You get a form 1099 NEC if you are a Sole proprietor you're going to report That income on your schedule C where you Report your profit or loss for that Business activity and on that form You'll be able to deduct any expenses That related to that income so if you Work with a variety of different Companies again and you're an Independent contractor or a freelancer You should respect uh expect to receive A form $199 NC from each of those Companies that you worked with the next Form 1099 I want to talk about is form [Music] 1099d this is the form 1099 that summarizes any dividends that You receive um through stocks that you Own or companies that you own sometimes

When you own stock in a company they Will pay you money because you own that Stock and that information needs to be Recorded on your tax return because it Might be taxable so that's what your Form 1099d is is it summarizes any dividends That you receive when you own stock or Other companies um throughout the tax Year the last kind of form 1099 that I Want to talk about is form 1099 Miscellaneous form 1099 Mi C this is a catch all form 1099 that You know if the income doesn't fall into Any of the other kinds of 1099s out There it will be reported on this form 1099 now I went over just a couple of The form 1099s and there are a variety Of different form 1099 types out there You should see a list popping up now of The other kinds of form 1099s that Aren't all of them but a majority of Them um just know that it is a form that Is sent to the IRS and yourself and it Summarizes the amount of income that you Receive through that activity next thing I briefly want to go over is when you Should expect to receive your form 1099 For the most part you should expect to Receive your form 1099 towards the end Of January January 31st um there or a Couple other kinds of form 10 form 1099s That are past that date a lot of them Are also middle of February but just

Know that you should expect to receive Your forms around the end of January February um and right now you should see Lists of dates related to the various Kinds of form 1099s but you should be Able to look up your kind of 1099 online And see the date that you're supposed to Receive it by I hope me going over what A form 1099 9 is is helpful I know this Kind this time of year there's various Form tax forms being received through The mail or online now if you see that Form 1099 you have a better sense of What that is to quickly rehash um what a Form 1099 is is it's a form that Highlights the amount of income you Receive throughout the tax year that Normally is related to your employment Because you're going to get a W2 for Your employment income but you know Interest Dividends um capital gains or losses if You're a freelancer independent Contractor the income you make um from Various Companies and you're going to receive a Form $199 and the IRS is going to Receive a form 1099 so be sure to report That form 1099 information on your tax Return because if you don't IRS has that Information there's a chance that you Know you're going to owe penalties Interest and ultimately you know refile Your tax return or amend your tax return

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Which can be a lot of headache thanks For watching this video I hope me Talking about form 1099 has been helpful For you if you enjoyed the video hit the Like button lets me know that I'm Creating a great video for you all and I'll see you all next Time

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