Types of 1099 Tax Forms

It takes all types to make the world go ’round. And so it goes with 1099 forms. But with new tax legislation hitting businesses from all angles, it’s a wonder businesses are able to keep their ducks in a row.

The Small Business Job Act of 2010, for example, is purported to do great things for small business owners, such as offer more in lending support and tax cuts, but it’s also increased the amount of reporting requirements and penalties, including the distribution of 1099s.

Fortunately, professional payroll services providers, such as AmCheck, are here to help businesses of all sizes sort through the wealth of information out there.

Here’s a breakdown of what each individual 1099 reports to the IRS:

  • 1099-MISC: Miscellaneous income, including income earned by independent contractor, fees, royalties, prize payments, etc.
  • 1099-INT: Types of interest income and related expenses
  • 1099-OID: A bond or note that was purchased for less than face value
  • 1099-DIV: Taxable dividends and capital gains paid to an investor
  • 1099-A: Acquisition or abandonment of a secured property
  • 1099-B: Amount gained from the sale of stocks
  • 1099-C: Amount of cancelled debt
  • 1099-PATR: Distributions received from a cooperative
  • 1099-SA: Distribution from a tax-advantaged savings account, such as an HSA or MSA
  • 1099-Q: Distribution from a Coverdell Education Savings Account (ESA)
  • 1099-R: Distributions from a retirement account, such as pensions, annuities or profit-sharing plans. (Each requires a separate 1099-R)
  • 1099-CAP: A company’s acquisition of control or substantial change in capital structure
  • 1099-LTC: Payment of long-term care benefits
  • 1099-H: Advanced payments for medical health insurance

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