1099

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The 1099 form is a series of documents the Internal Revenue Service (IRS) refers to as “information returns.” There are a number of different 1099 forms that report the various types of income you may receive throughout the year other than the salary your employer pays you.

If you’ve done any work as a freelancer or independent contractor, then you could receive a 1099 form from companies you’ve worked with (most likely a 1099-MISC). 1099-MISC forms report to the IRS exactly how much a company has paid you in the last tax year as a non-employee — they are the alternative to W-2 forms which companies and organizations use to declare income for employees.

According to the IRS or Internal Revenue Service, you are eligible for a 1099-MISC when you work as an independent contractor and perform services for a company rather than being a direct employee. Generally, as an independent contractor, you have the right to control what you work on and how it will be done. Your client can only “control or direct only the result of the work.”

Here are some examples that may be considered independent contractors:

• Driver for a ride-sharing company

• ‍Freelance graphic designer

• ‍Airbnb host

• Self-employed landscaper

• ‍Social media consultant

• General contractor

 

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