If you're a freelancer, independent contractor, or gig worker, tax season brings a stack of forms that can feel overwhelming. Unlike traditional employees who receive a W-2, you'll likely receive one or more Form 1099s. These IRS information returns report income you earned outside of a traditional employer-employee relationship.
There are over 20 different types of 1099 forms. The specific form you receive depends on the type of income you earned. Some are common for freelancers. Others apply to investors, retirees, or people who received government payments. Knowing which ones apply to you is the first step to staying organized at tax time.
1099-NEC: Nonemployee Compensation#
The 1099-NEC is the most common form for freelancers, independent contractors, and gig workers. Businesses issue this form to report payments of $600 or more for services provided during the year. If you did freelance work, drove for a rideshare service, or took on contract projects, you'll likely receive a 1099-NEC from each client who paid you $600 or more.
1099-MISC: Miscellaneous Information#
The 1099-MISC covers other types of income that don't fall under nonemployee compensation. This includes rent payments, royalties, prizes and awards of $600 or more, and at least $10 in broker payments or royalties. Before 2020, the 1099-MISC was used for nonemployee compensation too, but that reporting moved to the 1099-NEC.
1099-K: Payment Card and Third-Party Network Transactions#
Payment processors like PayPal, Stripe, Venmo, and Square issue the 1099-K. It reports business transactions processed through their networks. If you accept credit cards or use payment platforms for your freelance business, you'll receive this form when your transactions exceed the IRS threshold.
1099-INT: Interest Income#
Banks and financial institutions issue the 1099-INT to report interest income of $10 or more earned on savings accounts, CDs, and other interest-bearing accounts. If you have a high-yield savings account or earned interest on deposits, you'll likely receive this form.
1099-DIV: Dividends and Distributions#
Brokerages issue the 1099-DIV to report dividends and investment distributions. If you own stocks or mutual funds in a taxable brokerage account, you'll receive this form for any dividends paid during the year.
1099-B: Proceeds from Broker and Barter Exchange#
The 1099-B reports the sale or exchange of securities or commodities through a broker. You'll receive this form when you sell stocks, bonds, or other investments in a taxable account. It shows your proceeds and cost basis, which helps calculate capital gains or losses.
1099-R: Distributions from Retirement Plans#
The 1099-R reports distributions of $10 or more from pensions, IRAs, retirement plans, profit-sharing plans, and annuities. If you took money out of a retirement account during the year, you'll receive this form showing the distribution amount and any taxable portion.
1099-G: Certain Government Payments#
Government agencies issue the 1099-G to report unemployment compensation, state tax refunds, and agricultural payments. If you collected unemployment benefits or received a state tax refund, you'll receive this form.
1099-DA: Digital Asset Proceeds#
The 1099-DA is a newer form that reports proceeds from broker or barter exchange transactions involving digital assets like cryptocurrency. If you bought, sold, or traded crypto through a brokerage or exchange, you may receive this form.
For a complete list of forms, filing thresholds, and reporting rules, visit the official IRS Form 1099 Guide on irs.gov.