What is a 1099 form and who typically receives one?
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Explanation
There are many types of 1099 forms. Common ones include 1099-NEC (freelance/contract income over $600), 1099-INT (bank interest), 1099-DIV (dividends), and 1099-B (investment sales). Unlike W-2 employees, recipients of 1099 income typically owe self-employment taxes in addition to income taxes.
Tax preparation professionals recommend gathering all income documents, including W-2s, 1099s, and investment statements, before beginning the tax filing process.