A dizzying number of different types of 1099 forms can come across your desk at the start of tax season. Income from interest is reported on a 1099-INT; there's a 1099-DIV for dividends; pensions and retirement account payouts are reported on 1099-R; and real estate transactions are reported on yet another form, the 1099-S. And these barely scratch the surface of all the types of 1099s you could receive. While the list of different ways the IRS keeps track of your income is rather extensive, it seems to be the federal Form 1099-MISC, Miscellaneous Income, that taxpayers inquire about most often.
You do not generally need to attach Form 1099 to your tax return, unless you had federal taxes withheld from your pay.
What Is Form 1099-MISC?
Form 1099-MISC is received by self-employed business owners, independent contractors and freelance workers. This statement reports payments received from specific payers. It is similar to a W-2, which is received by employees and details their wages earned for the year; however, the 1099-MISC does not reflect taxes withheld because independent contractors are responsible for paying taxes on their own.
You should receive a Form 1099-MISC from all payers for any services you provided that were in excess of $600 for the year., but this does not always happen. For example, if you were paid $450 for doing contract work for a client, the client is not mandated by the IRS to supply you with a 1099-MISC. Yet, this does not mean you are not responsible for claiming this income. In fact, the IRS requires self-employed individuals earning more than $400 for the year to file taxes on those earnings. So, even if you do not receive a 1099-MISC for work you’ve done, you still need to keep track of these payments in order to include them when you file your tax return.
Does Form 1099 Need Attached?
You do not always have to attach a copy of your 1099-MISC to your tax return. Instructions for IRS Form 1040 state that you only need to attach supplemental forms if federal taxes were withheld. Because no federal income taxes or Social Security and Medical contributions are typically withheld from earnings reported on the Form 1099-MISC, you likely won't need to attach it to your return – only statements that prove withholding should be attached. But, if for some reason your 1099-MISC does show any federal or state withholding, you'll have to submit it attached to your IRS Form 1040, U.S. Individual Income Tax Return.
Attach Statement to Tax Return
If you do need to attach your 1099 to your tax return, make sure you do so correctly. Like with most things concerning the IRS, there are very specific rules and requirements regarding the way forms must be attached to your tax return. There is an Attachment Sequence No. located in the top right corner of each schedule or form that lets you know in which order these forms must be attached. Supporting documents need to be arranged in the same order as the forms and schedules they are supporting.
- IRS: About Form 1099-MISC, Miscellaneous Income
- IRS: How to Prepare Your Tax Return for Mailing
- IRS: About Form 1040, U.S. Individual Income Tax Return
- Internal Revenue Service. "About Form 1099-MISC." Accessed Jan. 15, 2020.
- Internal Revenue Service. "Am I Required to File a Form 1099 or Other Information Return?" Accessed Jan. 15, 2020.
- Internal Revenue Service. "2019 Instructions for Form 1099-MISC," Page 1. Accessed Jan. 15, 2020.
- Internal revenue Service. "2019 Form 1099-MISC," Pages 1–2. Accessed Jan. 15, 2020.
- Internal revenue Service. "2019 Form 1099-MISC," Pages 1–7. Accessed Jan. 15, 2020.
- Internal Revenue Service. "Form 1099-MISC." Accessed Jan. 29, 2020.
- Internal Revenue Service. "Instructions for Forms 1099-MISC and 1099-NEC (2020)." Accessed Jan. 15, 2020.
- Internal Revenue Service. "2019 General Instructions for Certain Information Returns," Pages 25–27. Accessed Jan. 15, 2020.
Tara Thomas is a Los Angeles-based writer and avid world traveler. Her articles appear in various online publications, including Sapling, PocketSense, Zacks, Livestrong, Modern Mom and SF Gate. Thomas has a Bachelor of Science in marine biology from California State University, Long Beach and spent 10 years as a mortgage consultant.