The gig economy — and 2024’s new reporting rules for PayPal, etc. — are going to make 1099s more “popular” than ever. There is a dizzying array of situations that call for 1099s, and it’s on us to know.
For example, there’s a long-standing rule at the IRS which states that even if a form is not mailed to you, you have to be aware of it — and no amount of reasoning with them will change their minds. It’s an old, old issue for them.
With that in mind, I’m offering a list to help you see some of the things that require a 1099.
- 1099-INT reports your interest income.
- 1099-K is mailed to you from financial service providers. The $600 exception does not apply to 1099-Ks.
- 1099-DIV is for reporting dividends.
- 1099-G is meant for people who received money from any government — from federal to municipal.
- 1099-R gets issued to account for income from pensions, IRAs, and annuities.
- 1099-B has to do with brokerage transactions.
- 1099-SA documents any money you’ve received from Health Savings Accounts and Medicare Advantage accounts.
- 1099-MISC is as the name implies: for miscellaneous income that does not fit with any other 1099s.
For people doing their first tax return with a 1099, I can’t stress enough the importance of finding a good CPA — preferably one that has a blog and is still excited about their work 🙂 Going with one of the big tax mills is asking for trouble, including identity theft. Many are not accessible to people in wheelchairs because the proprietors just hang a shingle on any old building and call it a practice.
At JHA we can connect you with a qualified Certified Public Accountant (who still has passion for their job). We can also help you get your documentation together; get your books in better shape; or be the point of contact with your accountant.
For more information, contact us.