<p>A 1099 form is used to report a freelancer or independent contractor’s non-employment income of $600 or more. It includes revenue from stock dividends, interest on deposits, property sales, cash prizes, royalties, and other sources. <br><br>The IRS receives this form straight from the payer. Therefore, the taxpayer doesn’t need to file it in their income tax return (ITR). They are, nevertheless, required to inform the IRS about these transactions.<br>Who is included under the 1099 category?<br>With nearly 59 million freelancers, the USA is regarded as the largest freelancer market in the world. And out of this figure, 36 million do it on a full-time basis. <br>Every year freelancers contribute $1trillion to the US economy. As a result, their earnings must be reported on the 1099 form. In addition, businesses that hire their services must also file the 1099 form with the IRS.<br>They do not need to fill out this form if they hired freelancers or contract workers through a third party like Fiverr, Upwork, or Freelancer.com.<br><br>Types of 1099 form<br>A non-salary income has varied forms – like consulting fees, dividends, interest, retirement payouts, tax refunds, and so on. And the 1099 form has a different category for each of these. We will show you how to fill out the 1099 form for payments made or received:<br>1) 1099 NEC – A company that paid $600 or more to an independent contractor or freelancer for work in the last fiscal year must fill out this form. Similarly, if they paid $600 or more to an attorney, they are subject to 1099 NEC.<br>2) 1099-DIV – If a person receives dividend income from their stocks, they will receive a 1099 DIV. The company will send them this form.<br>3) 1099 – INT – Individuals who earned $10 or more in interest in the preceding year will receive this form from banks and brokerage firms.<br>4) 1099 G – People who receive federal, state, or local government tax returns or unemployment benefits also receive 1099-G.<br>5) 1099-R – This form is also issued to those receiving money through a retirement or pension plan or individual retirement account (IRA). In addition, certain annuities and insurance contracts also fall in this category, though they may or may not be taxable.<br>6) 1099-S – This form is used to report the sale of land, which might be residential, commercial, or industrial.<br>7) 1099 MISC – This category includes money received as cash, reward, award, royalties that were not earned through employment.<br><br>How to Fill Out a 1099 Form?<br></p>