Form 1099 Basics: What You Need to Know

Whether you’re a small business owner or an individual tax filer, you may have heard a lot about 1099 forms. But what exactly are they?

What is Form 1099?

Use the table below to quickly jump to each 1099 form.

1099-A	1099-B	1099-C	1099-CAP
1099-DA	1099-DIV	1099-G	1099-INT
1099-K	1099-LS	1099-LPS	1099-LTC
1099-MISC	1099-NEC	1099-OID	1099-PATR
1099-Q	1099-QA	1099-R	1099-S
1099-SA		1099-SB

Essentially, 1099 tax forms are a series of documents the IRS refers to as “information returns.” They are used to report various types of income you may receive throughout the year other than the salary you earn from your employer. If you’re a freelancer, contractor, investor, or even someone who received a one-time payment, you could get a 1099 form.

On this page, we’ll delve into the world of 1099 forms, breaking down the various types you might encounter as a payee. We’ll take a closer look at some of the more common 1099 forms, explaining their significance and the scenarios in which you might receive them. Whether you’re new to 1099s or looking to clarify your understanding before tax filing, this guide will cover everything you need to know.

Who sends Form 1099?

Banks, brokerages, businesses, government agencies, insurance companies, and other organizations issue 1099 forms to report certain payments and transactions. They generally provide a statement to the recipient and file the information with the IRS.

Who gets a 1099 form?

Who receives a 1099 depends on the type of payment and the applicable reporting rules. For 2026, businesses generally issue Form 1099-NEC for qualifying nonemployee service payments totaling at least $2,000 to a recipient during the year. Other 1099 forms have different thresholds and exceptions.

Types of 1099 forms

There are many different kinds of 1099 forms, each serving a specific purpose and covering different types of income. It’s possible you may receive more than one type of 1099 form depending on your tax situation. You may even receive the same type of 1099 form more than once, just from different payers.

Here are some of the 1099 forms you may receive for tax year 2026. The deadlines below fall in 2027 and apply to the organizations issuing the forms:

1099 form	Purpose	E-filing due date	Paper filing due date	Send to recipient by
1099-A, Acquisition or Abandonment of Secured Property	Reports acquisition or abandonment of secured property by lenders, such as a foreclosure or repossession.	March 31	March 1	Feb. 1
1099-B, Proceeds from Broker and Barter Exchange Transactions	Reports proceeds from sales of securities and certain other transactions, along with basis information when required.	March 31	March 1	Feb. 16
1099-C, Cancellation of Debt	Reports forgiven or canceled debts of $600 or more.	March 31	March 1	Feb. 1
1099-CAP, Changes in Corporate Control and Capital Structure	Reports cash, stock, or other property received due to changes in corporate control or capital structure, such as an acquisition or merger.	March 31	March 1	Feb. 1
1099-DA, Digital Asset Proceeds From Broker Transactions	Reports digital asset transactions (like cryptocurrency) handled by digital asset brokers.	March 31	March 1	Feb. 16
1099-DIV, Dividends and Distributions	Reports dividends and distributions paid to shareholders.	March 31	March 1	Feb. 1
1099-G, Certain Government Payments	Reports certain government payments such as unemployment compensation.	March 31	March 1	Feb. 1
1099-LPS, Long-Term Care Premiums Paid Statement	Reports certain certified long-term care insurance premiums and charges associated with qualified retirement-plan distributions.	Feb. 1	Feb. 1	Feb. 1
1099-INT, Interest Income	Reports interest income of $10 or more.	March 31	March 1	Feb. 1
1099-K, Payment Card and Third Party Network Transactions	Reports payment-card transactions without a minimum threshold, and third-party network payments exceeding $20,000 and involving more than 200 transactions.	March 31	March 1	Feb. 1
1099-LS, Reportable Life Insurance Sale	Reports the sale of a life insurance policy.	March 31	March 1	Feb. 16
1099-LTC, Long-Term Care and Accelerated Death Benefits	Reports payouts from long-term care insurance contracts or accelerated death benefits.	March 31	March 1	Feb. 1
1099-MISC, Miscellaneous Information	Reports miscellaneous income, such as rent or royalties, not covered by other forms.	March 31	March 1	Feb. 1
1099-NEC, Nonemployee Compensation	Reports nonemployee compensation paid to independent contractors or freelancers.	Feb. 1	Feb. 1	Feb. 1
1099-OID, Original Issue Discount	Reports a specific kind of interest income called original issue discount on debt instruments, such as bonds, notes, certificates, etc.	March 31	March 1	Feb. 1
1099-PATR, Taxable Distributions Received from Cooperatives	Reports $10 or more of distributions received from cooperatives, also called patronage dividends.	March 31	March 1	Feb. 1
1099-Q, Payments from Qualified Education Programs	Reports payments from qualified tuition programs (529 plans) and Coverdell ESAs.	March 31	March 1	Feb. 1
1099-QA, Distributions from ABLE Accounts	Reports distributions from ABLE accounts.	March 31	March 1	Feb. 1
1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.	Reports distributions from pensions, retirement accounts, annuities, etc.	March 31	March 1	Feb. 1
1099-S, Proceeds from Real Estate Transactions	Reports proceeds from real estate sales or exchanges.	March 31	March 1	Feb. 16
1099-SA, Distributions from an HSA, Archer MSA, or Medicare Advantage MSA	Reports distributions from health savings accounts or medical savings accounts.	March 31	March 1	Feb. 1
1099-SB, Seller’s Investment in Life Insurance Contract	Reports the seller’s investment in a life insurance contract upon transfer.	March 31	March 1	Feb. 16

Note: These are general federal deadlines for tax year 2026, adjusted for weekends and federal holidays. Special rules, extensions, and state requirements may apply. Paper filing is available only when permitted under the IRS electronic-filing rules. Form 1099-MISC statements reporting amounts in boxes 8 or 10 are due Feb. 16, 2027. Form 1099-LS has separate issuer-copy deadlines, and Form 1099-LPS has special recipient-statement timing rules.

1099-A: Acquisition or Abandonment of Secured Property

You may receive Form 1099-A if a lender acquires property securing your debt, such as through foreclosure or repossession, or learns that you abandoned the property. The form provides information used to determine the tax consequences of the transaction. Receiving Form 1099-A does not, by itself, mean your debt was canceled. Canceled debt may be reported separately on Form 1099-C.

1099-B: Proceeds from Broker and Barter Exchange Transactions

Form 1099-B reports proceeds from sales of stocks, bonds, and other securities, as well as certain barter transactions. It generally includes transaction dates and may include cost basis and other information used to calculate capital gains or losses. If basis information is missing or needs adjustment, use your own records to complete your return.

1099-C: Cancellation of Debt

Form 1099-C reports canceled debt, such as forgiven credit card balances, personal loans, or mortgage debt. Canceled debt is generally taxable, but exceptions and exclusions may apply, including for bankruptcy or insolvency.

For student loans, the broad federal exclusion covering many discharges from 2021 through 2025 no longer applies to discharges occurring in 2026. Other qualifying exclusions remain, including certain public-service cancellations and discharges due to death or total and permanent disability. You can review the applicable rules before treating the amount on Form 1099-C as taxable income.

1099-CAP: Changes in Corporate Control and Capital Structure

If you’re a shareholder in a corporation that was either acquired or experienced a significant change in its capital structure, you might find yourself on the receiving end of a 1099-CAP form. This document is issued to shareholders who have received cash, stock, or other forms of property because of the corporation’s acquisition or restructuring.

Consolidated 1099 tax statement

A consolidated 1099 statement combines information from multiple 1099 forms into one document. Depending on your account activity, it may include Forms 1099-B, 1099-DIV, 1099-INT, 1099-MISC, and 1099-OID.

Common forms included in a consolidated statement are:

Form 1099-INT: Reports all interest income earned on bonds, CDs, and cash in your brokerage account.
Form 1099-DIV: Reports dividends received from stocks, mutual funds, and capital gains distributions.
Form 1099-B: Reports the sale, redemption, or exchange of securities such as stocks, mutual funds, CDs, or bonds.
Form 1099-MISC: Reports items such as rent, royalties, and substitute payments. For 2026, qualifying rents and certain other payments generally have a $2,000 reporting threshold; royalties and substitute payments generally have a $10 threshold.
Form 1099-OID: Reports the original issue discount on corporate bonds, CDs, collateralized debt obligations, and government obligations.

1099-DA, Digital Asset Proceeds From Broker Transactions

Form 1099-DA reports certain sales and exchanges of digital assets handled by brokers, including cryptocurrency transactions. Brokers began reporting gross proceeds for 2025 transactions.

For 2026, brokers must also report cost basis for covered digital assets (those acquired beginning in 2026 and continuously held in the same custodial brokerage account until disposal). Assets acquired before 2026 or transferred into a broker generally remain noncovered, so basis information may be missing. Keep your own purchase and transfer records to calculate gains or losses accurately. Buying and holding a digital asset alone doesn’t trigger sales reporting on this form.

1099-DIV: Dividends and Distributions

Form 1099-DIV reports dividends and certain distributions from investments, such as stocks and mutual funds. It may include ordinary dividends, qualified dividends, capital gain distributions, and non-dividend distributions. Dividends on credit union deposit accounts are generally treated as interest and reported on Form 1099-INT instead.

1099-G: Certain Government Payments

Form 1099-G reports certain government payments, including unemployment compensation and state or local income tax refunds, credits, or offsets. For 2026, the form also includes a separate box for family leave benefits paid through state paid family and medical leave programs. Whether a payment is taxable depends on the applicable rules.

1099-H: Health Coverage Tax Credit (HCTC) Advance Payments

Form 1099-H is a historical form used to report advance payments of the Health Coverage Tax Credit, which expired after 2021. You should not expect this form for tax year 2026.

1099-INT: Interest Income

You usually receive Form 1099-INT if you earn at least $10 in reportable interest from a bank or other financial institution, although other reporting rules can apply. The form may include both taxable and tax-exempt interest. Report taxable interest even if you don’t receive a form.

1099-K: Payment Card and Third Party Network Transactions

Form 1099-K reports gross payments processed through payment cards, payment apps, and online marketplaces. For 2026, third-party payment networks generally must issue the form when payments for goods or services exceed $20,000 and involve more than 200 transactions. Both conditions must be met. Payment-card transactions have no minimum federal reporting threshold.

You may still receive a form below the federal threshold. Receiving Form 1099-K doesn’t mean every dollar shown is taxable profit. Personal gifts and reimbursements are not business income, and business expenses or other adjustments may affect your taxable amount. Report taxable income even if you don’t receive a form. Digital asset sales handled by brokers are generally reported on Form 1099-DA.

1099-LS: Reportable Life Insurance Sale

Form 1099-LS is used to report the sale of a life insurance policy. If you sell your life insurance contract to a third party, such as a company that buys life insurance policies, that company is required to send you this tax form. Form 1099-LS reports the gross proceeds from the sale, which the IRS uses to track taxable income from the transaction. You may owe income tax on the sale if you sell the policy for more than your tax basis.

1099-LPS: Long-Term Care Premiums Paid Statement

New for tax year 2026, Form 1099-LPS reports certain premiums and charges paid for certified long-term care insurance. An insurance issuer provides this form when the reporting requirements connected with a policyholder’s request for qualified long-term care distributions from a defined contribution retirement plan apply. This form reports premiums and charges, while Form 1099-LTC reports benefits.

1099-LTC: Long-Term Care and Accelerated Death Benefits

If you got money from your long-term care insurance or as an early payout from a life insurance policy during the year, the insurance company will likely use Form 1099-LTC to report it. This helps keep track of these payments for tax purposes.

1099-MISC: Miscellaneous Information

Form 1099-MISC reports payments such as rent, prizes, awards, and royalties. For 2026, many payment categories have a $2,000 reporting threshold. Exceptions include royalties and substitute payments, generally reportable at $10, and gross proceeds paid to attorneys, reportable at $600. The revised form also includes fields for cash tips, tipped occupation codes, and qualified overtime compensation.

1099-NEC: Nonemployee Compensation

Form 1099-NEC reports qualifying payments for services performed by nonemployees. For 2026, the general reporting threshold is $2,000 per recipient. The revised form includes separate fields for cash tips, tipped occupation codes, and qualified overtime compensation where applicable. Receiving a form doesn’t automatically establish eligibility for a deduction.

1099-OID: Original Issue Discount

Form 1099-OID reports original issue discount on certain debt investments, such as bonds and certificates of deposit. OID generally arises when a debt instrument’s stated redemption price at maturity exceeds its original issue price. Taxable OID is generally included in income over the time you hold the investment, even if you have not received a cash payment. The form can also report tax-exempt OID.

1099-PATR: Taxable Distributions Received From Cooperatives

You may receive Form 1099-PATR if a cooperative pays you at least $10 in reportable patronage dividends or other distributions. Reporting exceptions apply. This form shows how much money you got back from the co-op, and you’ll need to report it when filing your taxes.

1099-Q: Payments from Qualified Education Programs

Form 1099-Q reports distributions from 529 plans and Coverdell education savings accounts. The earnings portion is generally tax-free when the distribution is used for qualified expenses and the applicable requirements are met.

For 2026, the federal limit for 529 distributions used for qualifying K–12 expenses increases to $20,000 per beneficiary per year across all of that beneficiary’s 529 accounts. State tax treatment may differ. Keep records showing how you used the distribution.

1099-QA: Distributions from ABLE Accounts

Form 1099-QA reports distributions from an ABLE account, which helps eligible people with disabilities save for disability-related expenses. Beginning in 2026, eligibility expands to people whose qualifying disability began before age 46. Distributions are generally tax-free when used for qualified disability expenses. Keep records of the expenses paid with account funds.

1099-R: Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

You may receive Form 1099-R for distributions from a pension, retirement plan, IRA, annuity, or certain insurance contracts. Some distributions are fully taxable, some are partly taxable, and others may be nontaxable but still require reporting on your return. Retirement-plan loans generally aren’t reported as distributions when they meet the applicable requirements. Loans treated as distributions and certain plan loan offsets may be reported on Form 1099-R.

1099-S: Income Proceeds from Real Estate Transactions

Form 1099-S reports gross proceeds from certain real estate sales or exchanges. Gross proceeds are not the same as taxable profit. Your basis, selling expenses, and any applicable exclusion help determine the taxable amount. For 2026, the form also includes reporting for digital assets received as payment in a real estate transaction.

1099-SA: Distributions From an HSA, Archer MSA, or Medicare Advantage MSA

Form 1099-SA reports distributions from an HSA, Archer MSA, or Medicare Advantage MSA. Distributions used for qualified medical expenses are generally tax-free, but you may still need to report them on your return. Keep records showing how you used the funds and follow the reporting instructions for your account type.

1099-SB: Seller’s Investment in Life Insurance Contract

Form 1099-SB reports the seller’s investment in a life insurance contract and its surrender amount following certain reportable policy sales or transfers to foreign persons. The life insurance issuer provides this form. If you sold your policy, review it alongside Form 1099-LS and your records to determine the transaction’s tax consequences.

FAQs about Form 1099s

Do I still need to report income if I didn’t receive a 1099 form?

Generally, no. For 2026, the usual threshold is at least $2,000 in qualifying payments to a recipient during the year. Exceptions apply, including when federal income tax was withheld under backup withholding rules. Payments settled through payment cards or qualifying third-party networks generally fall under Form 1099-K reporting instead.

Do I need to send Form 1099-NEC to an independent contractor if I paid them less than $2,000 in 2026?

How do I report my consolidated 1099 tax document in TaxAct®?

When reporting your consolidated 1099 statement in TaxAct, you’ll enter each Form 1099 one at a time as you e-file. Our interview questions will ask for information on your income, and our tax software will use your answers to determine which 1099 tax forms you need. We’ll then guide you through entering your total sales proceeds and other income information as necessary.

Do LLCs receive 1099 forms?

It depends on the LLC’s federal tax classification and the payment type. An LLC treated as a sole proprietorship or partnership generally follows the reporting rules for that classification, including the $2,000 threshold for qualifying 2026 nonemployee service payments.

LLCs taxed as corporations are typically exempt from receiving Form 1099-NEC, but exceptions apply, including payments for legal services. You can request Form W-9 to confirm the payee’s tax classification and taxpayer identification number.

Where can I get 1099 forms?

You can order information returns directly from the IRS website free of charge, but you can only request up to 100 copies of each form. Alternatively, you can purchase 1099 forms from office supply retailers or choose to e-file them using an online service.

How do I fill out a 1099 form?

Filing Form 1099s for the first time can be confusing, but the IRS provides detailed instructions for each 1099 form on its website. You can search for specific forms and their instructions on irs.gov. To begin, you’ll need the recipient’s taxpayer identification number (TIN) or Social Security number, the total amount paid to them during the year, and other information depending on the type of payment. Always double-check that your math adds up and that you’re using the correct form for the specific payment type.

When should I hire 1099 contractors vs. W-2 employees?

You can obtain official forms from the IRS or prepare them through an electronic filing service. If you file on paper, use an IRS-approved version of Copy A, as an ordinary printed website copy may not be acceptable for IRS processing. Check whether you must file electronically before ordering paper forms.

How do I fill out a 1099 form?

Start with the IRS instructions for the specific form and tax year. You will generally need the recipient’s legal name, taxpayer identification number, address, and the reportable payment amounts. Request Form W-9 when appropriate and check that you are using the correct form and payment category.
If you file 10 or more information returns in total, you must file electronically, counting almost all covered return types together. For tax year 2026 filings made in 2027, the IRS is transitioning information returns previously handled through FIRE to the Information Returns Intake System (IRIS). Allow time to complete registration before your filing deadline.

When should I hire 1099 contractors vs. W-2 employees?

Worker classification depends on the actual working relationship. For federal employment tax purposes, the IRS considers behavioral control, financial control, and the relationship between the parties. A written contract, a flexible schedule, or a short project doesn’t determine classification by itself.
Review the full arrangement before deciding how to classify and report payments to a worker. Other federal and state laws may apply different tests.

The bottom line

Form 1099s come in many varieties, each designed to report different types of income — from investments to freelance work and everything in between. Understanding which 1099 forms you may receive and how to report them is essential for accurate tax filing. With a little knowledge and the right tax preparation tools, like TaxAct, you’ll be well-prepared to handle your 1099 forms and avoid any unpleasant surprises this tax season.

This article is for informational purposes only and not legal or financial advice.

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Citations

Internal Revenue Service. Form 1099-LPS, Long-Term Care Premiums Paid Statement. Internal Revenue Service, www.irs.gov/pub/irs-dft/f1099lps–dft.pdf. Accessed 6 Nov. 2026.
Internal Revenue Service. “Forms, Instructions & Publications.” Internal Revenue Service, www.irs.gov/forms-instructions. Accessed 6 Nov. 2026.
Internal Revenue Service. “Order Information Returns and Employer Returns.” Internal Revenue Service, apps.irs.gov/app/taxmat/information-employer-returns/. Accessed 6 Nov. 2026.

Your Guide to Form 1099: What You Need to Know