What is 1099 form used for?

Form 1099 is used to report non-salaried income to the IRS for tax purposes. Every year it is mandatory for businesses, companies, and other agencies across the country to send out Form-1099 to specific employees. However, 1099 forms are not for employees who earn wages or receive a salary. The forms report different types of income individuals to receive throughout the year.

What is the purpose of a 1099 form?

While there are many types of 1099 forms, they all serve the same purpose; they are used by taxpayers to provide information to the Internal Revenue Service (IRS) about all of the different types of income they receive throughout the year outside of their regular salary.

What 1099 form to use?

Use the Form 1099-INT format to report earnings on state or local bonds. Report the income as if it were taxable for federal purposes. A Form 1099-INT must be submitted for each bond on which interest is paid. In your annual report, report payment amounts in positions 67-78 of the payee "B" record. Right-justify and zero-fill.