You use the different Forms 1099 for reporting various types of income not on your W-2. You should receive most 1099s by Feb. 1. However, these aren’t due until Feb. 15:
- Form 1099-B
- Form 1099-S
- Form 1099-MISC -- if one of these is true:
- Substitute payments are reported in box 8.
- Gross proceeds paid to an attorney are reported in box 14.
If you have income subject to backup withholding, the payers of that income will do both of these:
- Show the tax withheld on Form 1099
- Withhold tax at a rate of 28% if any of these apply:
- You don't provide the payer with your tax identification number, like your Social Security number (SSN).
- The taxpayer identification number (TIN) you provide is incorrect.
- The IRS notifies the payer that you’ve been underreporting interest or dividends.
- You haven’t certified that you’re exempt from backup withholding.
Form 1099-B is for reporting proceeds from securities transactions. Report securities transactions on Form 8949. If you have an account at a brokerage or mutual fund company, any Form 1099-B you receive might report:
- A single transaction
- Multiple transactions
You need this 1099-B information when preparing your return:
- Box 1a: Date of sale or exchange -- This is the date the transaction took place. Use it as the sales date on your Form 8949.
- Box 2a: Stocks, bonds, etc. -- This is the amount of money you received on the sale of your securities. Report it as the sales price on your Form 8949. The brokerage firm or mutual-fund company usually reduces this amount by commissions. See the checkbox next to the box 2a amount.
- Box 8: Description -- This is a brief description of the asset sold. Enter this amount on your Form 8949.
Some firms also provide information about the cost basis of the asset sold. You can use this information on Form 8949. Beginning in 2011, brokers and mutual-fund companies are required to:
- Report the basis of the shares acquired and sold after 2010 on Form 1099-B
- Classify the resulting gain or loss as either short or long-term
For securities bought before 2011, firms can choose if they want to include the cost basis on Form 1099-B. If you don’t include it, you're responsible for figuring your cost or other basis.
Form 1099-DIV is for reporting these from stocks and mutual funds:
- Capital gain distributions
You need this 1099-DIV information when preparing your return:
- Box 1a: Ordinary dividends -- Enter this amount on Form 1040 or on Schedule B (if required). It’s taxable at ordinary income rates.
- Box 1b: Qualified dividends -- This amount shows the portion of box 1a that’s taxed at a lower rate. Box 1a amounts aren’t always taxed at ordinary income rates.
- Box 2a: Total Capital gain distributions -- Enter this amount on Form 1040 or Schedule D (if required). It might be eligible for a lower tax rate.
- Box 6: Foreign tax paid -- This amount is taxes paid to a foreign government on international investments. You can claim a credit or itemized deduction for this amount. Choose whichever gives you the greater advantage. Check with a tax professional.
Form 1099-INT is for reporting interest income received. You need this 1099-INT information when preparing your return:
- Box 1: Interest income -- Enter this amount on Form 1040 or on Schedule B (if required). It’s taxable as ordinary income.
- Box 2: Early withdrawal penalty -- This amount is charged when you withdraw a time investment, like a CD, early. Enter this amount as an adjustment to income on Form 1040, line 30.
- Box 3: Interest on U.S. Savings Bonds and Treasury obligations -- Report this interest on Form 1040 or Schedule B (if required). It’s usually taxable on your federal return. It’s usually not taxable on your state return.
Form 1099-MISC is for reporting many types of income. The main types usually require the use of additional forms on your return. The main types include:
- Nonemployee compensation
You need this 1099-MISC information when preparing your return:
- Box 1: Rents -- Report real-estate rental income you receive on Schedule E. Report rent for personal property, like machinery, on Schedule C. Income reported on Schedule C usually is subject to self-employment tax.
- Box 2: Royalties -- Income you receive for:
- The right to your work over a specified period of time
- Extracting natural resources from your property
Report this income on Schedule C or Schedule E. Consult with a tax professional to assist you in reporting this income.
- Box 7: Nonemployee compensation -- Income you receive for contract labor or self-employment. You must usually report this income on Schedule C and pay self-employment tax on the net profit.
To learn more, see these tax tips:
- Self-Employment Deductions
- Form W-2