When you prepare and e-file your 2022 Taxes, you can enter income reported on 1099 Forms you received and all other taxable income on eFile.com with your IRS and/or state tax returns. You do not have to submit 1099 forms with your tax return, but keep them with your tax records. Prepare and e-file your 2022 Taxes by April 18, 2023.
What Is the Minimum Amount Reported on a 1099?
This is the amount the payer (employer, organization, etc.) is required to report on a 1099 in order to issue it to you. Since the IRS considers any 1099 payment as taxable income, you are required to report your 1099 payment on your tax return. For example, if you earned less than $600 as an independent contractor, the payer does not have to send you a 1099-MISC or 1099-NEC, but you generally still have to report the amount as self-employment income. If you sell an item on eBay at a loss, such as selling a used couch for less than you paid for it, you should not be issued a 1099-K.
If you are expecting a 1099 and you do not receive it by January 31, the IRS recommends contacting them at 1-800-829-1040. You will be able to use a substitute form to file your return and you may even still be able to eFile it. However, you should contact the issuer of the form first to find out why you have not received it.
How To Prepare, eFile a Tax Return with Form 1099 Income
Start a tax return on eFile.com! We will determine the correct forms to use based on your answers to a simple tax interview. Learn about the many benefits of filing your taxes with eFile.com. You may also want to see these instructions to prepare and eFile a tax return with 1099 income.
If you need to issue a 1099, find out how to prepare and file a 1099 form. See an overview of other tax return forms and declaration forms.
Which 1099 form should I use?
Form 1099-NEC is a frequently used tax form, as it is given to independent contractors or gig workers. 1099-MISC is also a common 1099 form, as it serves many purposes. There are many IRS and state associated 1099 forms in the United States: 1097-BTC, 1098, 1098-C, 1098-E, 1098-F, 1098-Q, 1098-T, 1099-LS, 1099-QA, 1099-SB, 3921, 3922, 5498, 5498-ESA, 5498-QA, 5498-SA, etc. We have organized the most common 1099 forms in the table below.
What to Do with Form 1099?
Did you receive a 1099 form for self-employment work? Independent contractor payments? Income from a sale or transaction on sites like eBay or Venmo? Reporting your 1099 form is simple on the eFile Tax App; read below to see what kinds of income you may receive a 1099 for and how to file taxes with this tax form.
Form 1099 is a type of informational return; you will get a 1099 form in the mail if you received certain types of income or payments (other than wages, salaries, or tips) during the year. Generally, you will have to report the information from a 1099 on your tax return. We have divided the topic of 1099 forms into three pages:
- What are the 1099 form types and requirements?
- How to prepare and file a tax return with a Form 1099
- How to issue a Form 1099.
As a recipient or payee, navigate to Item 2 to find out more on filing your tax return with a 1099 form. As an issuer or payer, see Item 3 on how to supply recipients with their 1099 forms.
When to file a 1099 form? Why did I receive a 1099?
In general, as the recipient/payee of the following business income types, the payer should likely issue Form 1099-MISC or 1099-NEC, depending on the contract or agreement, to each person or unincorporated business who has received at least the following payment or income amounts:
- At least $600 in business rental income
- At least $600 in services performed by a person or business who is not an employee (including parts and materials)
- At least $600 in prizes, awards, or other income payments
- Royalty income of at least $10
- Business attorney fees of at least $600 or more—regardless of the attorney's incorporation status
- A minimum of $400 for independent contract work
- At least $5,000 of direct sales to a buyer for resale other than a permanent established retailer
- Delayed: At least $600 in third party transactions for goods and services. This includes platforms like Cash App and PayPal used to pay for any good or service, perhaps as part of a business. This change is part of the American Rescue Plan; previously, these apps were only required to issue a 1099-K if the transactions totaled $20,000 or more or the user had 200 transactions or more in a year. See details below. As it stands, this rule has not gone into effect.
If you did not receive a 1099 form when you were supposed to, contact the issuer of the form. They can generally provide more information and/or give you a copy.
Over the past years, the IRS has enforced the 1099 filing requirements. As a result, all IRS business tax returns include questions on whether payments were made during the year that would require the filing of 1099s and whether or not those forms were actually filed to the IRS and the recipient of the payments.
A taxpayer, recipient, or payee will receive a paper (and sometimes an emailed copy) 1099 form from an issuer or payer by January 31 of the following year of the tax year in which the income was paid.
- For example, for income generated during Tax Year 2022 that is subject to a 1099, the proper form must be submitted from the issuer or payer to the payee by January 31, 2023. Generally, the taxpayer must report this income on the tax year return in which the income occurred—here, Tax Year 2022. The payer of this income also files a report for a given tax year to the IRS and state that includes the amount paid and social security number of the payee.
- The recipient (payee) of Form 1099 is not required to submit this form to the IRS and/or state tax agency when e-filing a tax return. That is, unless the particular Form 1099 includes a report for federal income tax withheld by the payer on behalf of the payee from the related income payments. However, as with all related tax documents, a copy of any tax return related forms and receipts should always be kept by the payer and payee.
Will you receive or have you already received a 1099 form? Should you still get a 1099 if you only earned $10? Does any amount of 1099 income have to be reported on your tax return? Visit the sections below for answers to your 1099 form questions.
While a W-2 reports wages, salaries, and tips, a 1099 reports other kinds of income. There are many varieties of 1099 forms and each one is used to report different, specific types.
You may also want to see 1099 General Instructions.
IRS $600 Bank Surveillance
Important: the IRS delayed this program as of late 2022 and thus the information below does not apply for current year taxes, It is unclear as to when or if this program will be enacted.
The IRS is not snooping through your bank account for payments or transactions of $600 or more as of late 2022. They are, however, requiring that third-party money sending applications, like Venmo and CashApp, report total earnings of $600 or more by a single person. These will need to be reported on your 2022 Return. Income from transactions you make on these apps may be subject to income taxes and will need to be reported on your return. The platforms will report this to the IRS, so you will need to do so as well, otherwise the IRS will issue you a notice regarding unreported income. This income will be reported on Form 1099-K.
This does not mean all transactions are subject to taxes; the tax is only for qualifying transactions for business activity or income from selling property. The following table details what transactions may be taxable and what may not be.
I sent money to my friend for paying for dinner.
This income is not reported to the IRS. If you send or receive money over a third-party application to reimburse someone's expenses for dinner or other nonbusiness activity, then this is not reported to the IRS.
I sold my property or collectible on eBay, Facebook Marketplace, private sale via Venmo, etc.
This income may be reported to the IRS
. If you generate income from your sale, you may need to report this in your return if you make a significant gain. See details on capital gains and sale of collectibles
I collected income on PayPal, CashApp, etc. for my side gig by performing services.
This income is reported to the IRS
. Since this is business income, it is required to be reported to the IRS and self-employment taxes will be applied. See details on self-employment income
I sent money as a gift for someone's graduation, birthday, etc.
This income may not be reported to the IRS.
This type of exchange is only subject to gift tax
if it exceeds certain amounts. Generally, most gifts of cash are not required to be reported and they are personal exchanges of money, not for business purposes.
I split rent or electricity with my roommate over Venmo, CashApp, etc.
This income is not reported to the IRS. As a personal transaction between two private parties, this is not reported to the IRS and you should not get a 1099-K.
If you wrongly receive a 1099-K for income that was not supposed to be reported, you can request a new form from the issuer or report it on your return as wrong. Most apps have an option to toggle whether you are sending money for personal use or business use.
Form 1099: Types, Due Dates
The table below lists each type of 1099 form by number and description, reporting requirements (the minimum dollar amount which must be reported), and the due date on which the form should be received by you from the issuer. February 28 is the date for it to be received by the IRS by the issuer or payer. Remember, you as the receiver or payee do not send the 1099 to the IRS when e-filing.
Acquisition or Abandonment of Secured Property
Proceeds From Broker and Barter Exchange Transactions
Cancellation of Debt
Changes in Corporate Control and Capital Structure
Dividends and Distributions
$10 or $600 for liquidations
Certain Government Payments
Health Coverage Tax Credit (HCTC) Advance Payments
$10 ($600 for some business-related interest)
Merchant Card and Third Party Network Payments
Long-Term Care and Accelerated Death Benefits
$600 for non-employee compensation
($10 for royalties and most other sources)
$600 for non-employee compensation
($10 for royalties and most other sources)
Original Issue Discount
Taxable Distributions Received From Cooperatives
Payments From Qualified Education Programs
Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Proceeds From Real Estate Transactions
Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
Railroad Retirement Board Statement
Railroad Retirement Board
Social Security Benefit Statement
Social Security Administration
*$600 is part of a new threshold that has not yet passed. $20,000 applies to past year returns and is no longer relevant when or if they is enacted.
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