Form 1099
An IRS information return that reports income paid to individuals outside of regular employment.
What is Form 1099?
Form 1099 is a series of IRS information returns used by payers to report non-wage income paid to individuals. Payers submit copies to both the IRS and the recipient. Major variants include: 1099-INT (interest income), 1099-DIV (dividends), 1099-B (brokerage proceeds), 1099-R (retirement distributions), 1099-NEC (non-employee compensation, e.g., freelance income ≥ $600), and 1099-MISC (miscellaneous income including rents and royalties). Recipients must report 1099 income on their tax return even if they do not receive the form, as the IRS cross-references 1099 data against filed returns.
Example
A freelance writer earns $8,000 from a magazine publisher in 2024. The publisher issues a 1099-NEC showing $8,000 in Box 1. The writer reports this on Schedule C of Form 1040 as self-employment income, deducts allowable business expenses, and pays self-employment tax on the net profit—even if the 1099 is lost or never arrives.
Source: IRS — About Form 1099-NEC