Navigating the Form 1099 Maze

Tax Professionals Resource
September 11, 2012 — 1,167 views  
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When tax time rolls around each year, businesses are required by the Internal Revenue Service to issue Form 1099s to report numerous types of income payments. This informative statement reports non-employee income, not wages, salaries or tips. There are multiple variations of this form. To help navigate the Form 1099 maze, letters are used to identify and distinguish the different types of income. 

Here is a listing of 14 variations of Form 1099 and the type of income associated with each form:

1) 1099-B: summarizes the proceeds from broker and barter exchange transactions. This includes the sale of stocks, bonds and mutual funds along with the accompanying gains or losses. 

2) 1099-C: reports cancelled debts by a lender or creditor. Debts discharged by bankruptcy and certain student loans are exceptions. The minimum reportable amount is $600. 

3) 1099-DIV: reports dividends and capital gain distributions relating to stocks. There is a $10 minimum. 

4) 1099-G: reports payments by a government entity, which includes unemployment compensation, state tax refunds or credits, grant money and agricultural subsidies. 

5) 1099-INT: summarizes interest income and related expenses. These statements have a minimum of $10.

6) 1099-K: reports merchant card, either debit or credit, and third-party network payments with gross payments that exceed thresholds of $20,000 and 200 transactions. This is the newest Form 1099, which took effect in 2012 for transactions occurring in 2011. 

7) 1099-LTC: reports long-term care and accelerated death benefits generally paid by an insurance provider. 

8) 1099-MISC: reports various types of income that include rent or royalty payments, awards, contest winnings, prizes and compensation for independent contractors, freelancers and service workers. Generally there is a $600 minimum income requirement; however, royalty payments only have a $10 minimum. 

9) 1099-OID: reports original-issue discount income from securities, such as Treasury bills, zero-coupon bonds and commercial paper with a term of more than one year. 

10) 1099-PATR: reports patronage distributions paid to the members of a cooperative association. These distributions may be shared profits, revenues or credits. 

11) 1099-R: reports all distributions from retirement plans, such as pensions, IRAs, 401(k) plans, 457 plans, annuities and insurance contracts. The minimum reportable distribution is $10. 

12) 1099-S: reports a detailed statement of the proceeds from the sale of real estate. 

13) RRB-1099: reports the details of railroad retirement benefits.

14) SSA-1099: reports the details of social security benefits paid to retirees or disabled persons.

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