If you earned income outside of a regular paycheck, there's a good chance you'll receive one or more Form 1099s. A 1099 is an information return that reports certain types of income to both you and the IRS. Unlike a Form W-2, which reports employee wages, Form 1099 is used to report many other kinds of payments, including freelance income, interest, retirement distributions, government benefits, and more.
Because the IRS receives a copy of these forms, it's important to include the income shown on your tax return when required. Receiving a 1099 doesn't always mean you'll owe tax, but it does mean the IRS has been notified that a payment was made to you.
Let's look at some of the most common types of 1099 forms you may receive when filing your 2026 tax return in 2027.
1099-G: Certain Government Payments
Form 1099-G reports certain payments made by a federal, state, or local government. Common examples include:
- Unemployment compensation
- State or local income tax refunds
- Taxable grants
- Certain agricultural payments
Unemployment Benefits
If you collected unemployment benefits during the year, you'll generally receive a Form 1099-G showing the amount paid to you. Unemployment compensation is usually taxable for federal income tax purposes and must be reported on your return.
If federal income tax was withheld from your benefits, that amount will also appear on the form and may help reduce your tax bill when you file.
State Tax Refunds
You might also receive a 1099-G if you received a state or local income tax refund. Whether that refund is taxable depends on your prior-year tax situation, particularly whether you itemized deductions and benefited from deducting state income taxes.
1099-INT: Interest Income
If a bank, credit union, brokerage firm, or other financial institution pays you interest, you may receive Form 1099-INT.
In many cases, a payer must issue this form when it pays at least $10 in interest during the year. Common sources of interest income include:
- Savings accounts
- Certificates of deposit (CDs)
- Money market accounts
- Bonds and other investments
Interest income is generally taxable and must be reported on your tax return, even if you don't receive a form because the amount is below the reporting threshold.
If your total taxable interest income exceeds certain reporting thresholds, additional schedules may be required. Tax software typically walks you through this process automatically.
Keep your 1099-INT forms with your tax records and verify that the amounts match your financial statements.
1099-R: Retirement Distributions
Form 1099-R reports distributions from retirement accounts and retirement-related plans. You may receive one if you took money from:
- A traditional IRA
- A pension plan
- An annuity
- A 401(k) or other employer-sponsored retirement plan
- Certain insurance or survivor benefit plans
Not every distribution is fully taxable. The taxable amount depends on factors such as:
- The type of account
- Whether contributions were made with pre-tax or after-tax dollars
- Whether the distribution was rolled over to another retirement account
If you withdrew funds before reaching the applicable retirement age, an additional tax may apply unless an exception is available. Even when a distribution is not taxable, it often still must be reported on your return.
1099-NEC: Nonemployee Compensation
Form 1099-NEC is now the primary form used to report payments made to independent contractors, freelancers, gig workers, and other self-employed individuals.
Generally, a business must issue Form 1099-NEC if it paid you $600 or more during the year for services performed as a nonemployee.
Income reported on Form 1099-NEC may include:
- Freelance payments
- Commissions
- Professional fees
- Contract labor payments
- Certain prizes and awards for services performed
Why the Form Matters
The IRS receives a copy of every 1099-NEC submitted by businesses. When you file your tax return, your reported income should generally match the information reported to the IRS.
If you're self-employed, you'll typically report this income on Schedule C and may also owe self-employment tax in addition to income tax.
Receiving a 1099-NEC is completely normal for freelancers and independent contractors. The key is maintaining good records throughout the year and reporting your income accurately.
1099-MISC: Miscellaneous Income
While Form 1099-NEC is now used for most freelance and contractor payments, Form 1099-MISC still exists and is used to report certain other types of income.
Examples include:
- Rent payments
- Royalties
- Certain prizes and awards
- Attorney payments
- Medical and health care payments
- Other miscellaneous income reported under IRS rules
If you receive a 1099-MISC, review the form carefully to determine how the income should be reported on your tax return.
1099-C: Cancellation of Debt
Form 1099-C reports debt that has been canceled, forgiven, or discharged by a lender.
For example, you may receive a 1099-C if:
- A credit card balance is forgiven
- A lender settles a debt for less than the full amount owed
- Certain loans are canceled
In many situations, canceled debt is treated as taxable income. However, there are exceptions and exclusions that may apply, such as certain bankruptcy or insolvency situations. Because the rules can be complex, it's important to review your specific circumstances before filing.
Why It's Important to Keep Your 1099 Forms
Every 1099 you receive should be treated as an important tax document. Since the IRS typically receives a copy, reporting the information correctly can help you avoid notices, delays, or additional questions later.
Before filing:
- Gather all of your 1099 forms.
- Compare the amounts to your own records.
- Verify names, Social Security numbers, and payment amounts.
- Keep copies with your tax records after filing.