1099

A 1099 is a tax form used in the United States to report income earned by individuals or businesses that are not traditional employees. When you work as an independent contractor, freelancer, or self-employed person, clients or companies that pay you $600 or more in a year are required to send you a 1099 form. This form details how much money you received, which you must report on your tax return. It ensures the IRS can track all taxable income, regardless of whether taxes were withheld. The most common type is the 1099-NEC for non-employee compensation.