1099
A family of IRS tax forms used to report income other than wages, such as freelance earnings (1099-NEC), interest (1099-INT), dividends (1099-DIV), and more.
The 1099 series includes many different forms, each reporting a specific type of non-wage income. The most common are 1099-NEC (nonemployee compensation for freelance and contract work), 1099-INT (interest income), 1099-DIV (dividends), 1099-B (proceeds from broker transactions), and 1099-MISC (miscellaneous income like rent).
If you earn $600 or more from a single payer as a freelancer or independent contractor, they must send you a 1099-NEC. Similarly, banks report interest over $10 on a 1099-INT. Brokerage firms report stock sales on 1099-B.
Even if you do not receive a 1099, you are still required to report the income on your tax return. Payers also send copies to the IRS, so unreported 1099 income is one of the most common triggers for IRS notices.
Related Terms
W-2
A tax form employers send to employees each year reporting wages earned and taxes withheld, including federal income tax, Social Security, and Medicare.
Self-Employment Tax
The combined Social Security (12.4%) and Medicare (2.9%) tax paid by self-employed individuals — effectively both the employee and employer shares of FICA, totaling 15.3%.
Schedule C
The IRS form (Schedule C of Form 1040) used by sole proprietors and single-member LLCs to report business income and expenses. The net profit flows to your personal tax return.
Gross Income
The total of all income you receive during the year before any deductions or adjustments. Includes wages, interest, dividends, rental income, and business income.