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What is a 1099?

Posted: March 4th, 2010 | Author: | Filed under: Finance | Tags: , , , , , , , , , , , , , , , , , , , , , | No Comments »

A 1099 can be any one of a series of information returns issued by payers that report payments made to individuals other than wages, salaries, and tips (which are reported on the W-2). Most other forms of income are reported various 1099 forms which are issued by the entity that paid the money. One copy is saved by the payer, one copy is sent to the payee (who then uses it to fill out his or her individual tax return), and one copy is sent directly to the Internal Revenue Service (IRS), who saves it in… [More]