August 7, 2009, Newsletter Issue #179: FORM 1099
Tip of the Week
Whenever you receive income from sources other than your wages, you will receive an IRS Form 1099. Taxes have not been withheld from this income. Therefore, you are responsible for paying all the taxes on any income submitted to you on the IRS Form 1099. Form 1099 is considered a series, since there are many forms applicable to it. This tax form has a suffix specifically designated to the form/type of income. For instance, 1099-MISC is for miscellaneous income that cannot be categorized into other 1099 categories for income tax reporting purposes. Examples of miscellaneous income include: self employment income, royalty income, and some prize receipts.
Here are some other 1099 forms with their specific use that you may receive:
1099-INT interest
1099-D dividends
1099-B stock & bond sales
1099-R IRA distributions, pensions, annuities
1099-G unemployment compensation
You can see from the above why the Form 1099 series is known as that. There are many subcategories contained within it.
Know that you do not have to attach copies of your 1099 to your 2006 income tax return. The IRS does receive copies of the forms, though. They are sent by the person who paid you money.
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