If you received income from investments, retirement accounts, payments apps, government benefits, or other sources, you may receive one or more tax forms beyond a W-2. These forms help you report income correctly on your federal tax return.
Below are some of the most common income forms taxpayers receive and what each form is used for.
Form 1099-B: Proceeds From Broker and Barter Exchange Transactions
You may receive Form 1099-B if you sold stocks, bonds, mutual funds, ETFs, or other investments through a broker.
This form generally shows:
- The investments sold
- The sale date
- The proceeds from the sale
- Any reported gain or loss information
You'll typically need the purchase date and original cost of the investment as well to accurately report the transaction on your tax return.
Form 1099-C: Cancellation of Debt
Form 1099-C reports debt that has been canceled or forgiven by a lender, government agency, or financial institution.
In many cases, canceled debt is considered taxable income and must be reported on your tax return. However, certain exceptions and exclusions may apply.
If you qualify for an exclusion, you may be able to reduce or eliminate the taxable amount by filing Form 982. TaxSlayer supports Form 982 when needed.
Form 1099-DIV: Dividends and Distributions
Form 1099-DIV reports income earned from investments, including:
- Ordinary dividends
- Qualified dividends
- Capital gain distributions
Generally, dividends and capital gain distributions of more than $10 are reported on this form.
Form 1099-INT: Interest Income
Banks, credit unions, brokerage firms, and other financial institutions issue Form 1099-INT to report interest income.
Common sources include:
- Savings accounts
- Checking accounts
- Certificates of deposit (CDs)
- Savings bonds
Even if interest earnings are automatically reinvested, they may still be taxable and reportable.
Form 1099-G: Certain Government Payments
Form 1099-G may be issued for several types of government payments, including:
State or Local Tax Refunds
If you received a state or local tax refund, it may be taxable on your federal return if you claimed an itemized deduction for those taxes in a prior year.
If you claimed the standard deduction, the refund is generally not taxable.
Unemployment Compensation
Unemployment benefits are also reported on Form 1099-G.
If you received unemployment compensation during the year, you must report it as income on your federal tax return.
Form 1099-K: Payment Card and Third-Party Network Transactions
Form 1099-K reports payments processed through:
- Credit cards
- Debit cards
- Online payment platforms such as PayPal, Venmo, Cash App, and similar services
For many taxpayers, amounts reported on Form 1099-K relate to business or self-employment income that is reported on Schedule C.
However, not every Form 1099-K represents taxable business income. Personal reimbursements, gifts, and certain non-business transactions may require different treatment. Be sure to review the details carefully before filing.
Form 1099-MISC: Miscellaneous Income
Form 1099-MISC is commonly used to report income such as:
- Rent
- Royalties
- Prizes and awards
- Other miscellaneous payments
If the form reports rental or royalty income, you'll generally report that income on Schedule E.
Form 1099-Q: Payments From Qualified Education Programs
You may receive Form 1099-Q if you received distributions from:
- A Coverdell Education Savings Account (ESA)
- A Qualified Tuition Program (529 plan)
Many Form 1099-Q distributions are not taxable when the funds were used for qualified education expenses, transferred to another eligible beneficiary, or rolled into another qualified education program.
Form 1099-R: Retirement Plan Distributions
Form 1099-R reports distributions from retirement plans and accounts, including:
- Traditional IRAs
- Roth IRAs
- 401(k) plans
- Pensions
- Annuities
This form may also be issued if you:
- Rolled over retirement funds
- Converted a Traditional IRA to a Roth IRA
While many rollovers are not taxable, pension payments and certain retirement distributions may be partially or fully taxable.
Form SSA-1099: Social Security Benefit Statement
Form SSA-1099 reports Social Security benefits received during the year.
The form may also show:
- Medicare premiums withheld from benefits
- Any benefit repayments made during the year
Depending on your total income, a portion of your Social Security benefits may be taxable. TaxSlayer automatically calculates the taxable amount based on the information entered on your return.
Schedule C: Profit or Loss From Business
If you're self-employed, operate a sole proprietorship, or receive income as a statutory employee, you'll generally report your business income and expenses on Schedule C.
Schedule C allows you to calculate your net profit or loss from business activities.
If you have a profit, you may also owe self-employment tax, which is calculated on Schedule SE. TaxSlayer automatically calculates any applicable self-employment tax based on your entries.