What Is a 1099 Tax Form?

If you’ve ever hired a freelancer or received non-employee income from a person or business other than your employer, you’ve probably come across a version of Internal Revenue Service (IRS) Form 1099. With updated 2026 reporting rules and thresholds, it’s essential to understand which 1099 applies to you and what to do when you receive or issue one.

Use this blog to understand what a 1099 is, its purpose, who issues and receives it, 1099 variants, and how to use your 1099 to help file your taxes. This ensures compliance and a smooth tax season. 

The Purpose of a 1099 Tax Form

So, what is a 1099 form and its purpose? A 1099 reports non-salaried income or payments made outside traditional W-2 employment. Businesses issue 1099s to contractors and freelancers who then report that income to the IRS. Businesses also issue a copy of each 1099 they distribute to the IRS.

While reporting nonemployee income is the most common use of a 1099, they also track other types of income, including: 

• Investment income

• Retirement

• Real estate

Who Fills Out and Who Receives a 1099

Who Fills Out a 1099?

Any business or payer that paid $600 or more to a contractor, freelancer, or service provider (except for 1099-K, which has different reporting thresholds) must fill out and distribute the appropriate Form 1099.

If you've only issued a single 1099, you can mail or file it electronically. However, if you issue 10 or more 1099s in a single tax year, you will be subject to mandatory e-filing by the IRS.

Who Gets a 1099?

Contractors, gig workers, and vendors who earned $600 or more from non-employee income should receive a Form 1099 from each qualifying person or business for which they worked. 

The 1099-K 2026 rules have been changed as a result of the passage of the One Big Beautiful Bill Act in 2025. Individuals who earned $20,000 or more and more than 200 transactions through payment platforms such as PayPal and Venmo will receive a 1099-K. This form reports payments made from: 

• Credit, debit, or stored value cards

• Payment apps or online marketplaces, also known as third-party settlement organizations (TPSOs)

C corporations and S corporations don't typically receive IRS Form 1099-NEC, which is an exception. 

16 Types of 1099 Forms

Not sure which type of 1099 you need to issue? While certain 1099s are more common than others, you will use one of the following forms depending on the nature of your work or business. 

Most taxpayers will only see a few types — 1099-NEC, 1099-MISC, or 1099-K — but it’s important to recognize all variants to avoid missing taxable income.

How to Use a 1099 to File Your Taxes

If you send a 1099 form to someone else, you don’t need to include this document in your tax return. If you are the recipient, and the money it’s documenting is taxable income, you must include information from the 1099 on your IRS Form 1040, U.S. Individual Income Tax Return.

2026 filing deadlines:

• Businesses issuing 1099-NEC or 1099-MISC: file and furnish by January 31, 2026.

• Recipients: report on Form 1040, Schedule C (business) or Schedule 1 (other income).

What to do if you receive a 1099-K? Determine that the income detailed is taxable, reconcile the information, and report that income to the IRS. 

Efficiently reconcile 1099 totals by using do-it-yourself accounting tax software or by working with the experts at 1-800Accountant for an affordable, tax-deductible fee. 

Common 1099 Filing Mistakes to Avoid

Ensure compliance and smooth operations by avoiding these common mistakes when filing 1099s. 

• Forgetting to file Form 1096 when mailing paper 1099s.

• Misreporting PayPal and Venmo income.

• Not verifying contractor W-9 information before issuing a 1099.

• Missing state-level 1099 filing requirements.

Working with a CPA, EA, or other tax professional ensures your forms are filed accurately and on time.

Frequently Asked Questions About IRS Form 1099

1. What Should I Do if There’s a Mistake on My 1099?

If there’s a mistake on your 1099, you have a few options. If the payer made an error, reach out to them. They can send you a corrected version when filing your tax return. If you don’t receive a 1099 (or a corrected one) by the end of February, contact the IRS. The IRS will contact the payer on your behalf and provide instructions on filing your tax return if you don’t receive your 1099 or corrected form by the tax filing deadline. 

2. What’s the Difference Between a 1099 and a W-2?

There are differences when comparing 1099 vs. W-2 forms. Businesses issue W-2s to employees whose income tax they withhold from their paychecks. After withholding these funds, businesses pay them to the IRS on behalf of their employees. If you receive a 1099, however, taxes aren't withheld. You'll have to gather tax documents and ensure that taxes are withheld yourself throughout the year.  

3. Do I need to issue a 1099?

Each 1099 form has its own requirements. For example, you only need to complete a 1099-NEC for an individual to whom you paid more than $600. If you receive Form 1099, familiarize yourself with 1099-NEC filing requirements. However, if you’re a financial institution, you must send an individual a 1099-INT if they earned at least $10 in interest on their account. 

4. When will I receive my 1099?

You should receive your 1099 no later than January 31 of the following year. If you don't receive your form by then or notice errors, reach out to the issuer immediately. 

5. What happens if I don’t report 1099 income?

Unreported income can trigger costly IRS penalties and invite an audit that's stressful and can distract from your work. The IRS receives copies of all your 1099s, so it will know if that income has been omitted from your federal income tax return. 

6. Can I get my 1099 electronically?

Most issuers can now provide you with an electronic copy of your 1099. You must consent to electronic delivery to begin receiving your 1099s electronically. 

Simplify Your Tax Filing with 1-800Accountant

Whether you’re a freelancer tracking income or a small business owner issuing 1099s, 1-800Accountant, America's leading virtual accounting firm, makes it easy. Our experts handle your 1099 filings, IRS submissions, and tax planning, all for one flat, tax-deductible fee.

Even the most complex tax situations are a cinch with our experts by your side. Talk to a tax expert today to learn about full-service bookkeeping, affordable payroll, year-round tax advisory, EIN applications, and personal income tax preparation that has you covered throughout the year.