Comprehensive Guide to Common 1099 Forms

Comprehensive Guide to Common 1099 Forms

As tax season approaches, many individuals receive various 1099 forms in January or February. These forms report different types of income you may have received throughout the year. Understanding which forms to expect and what they mean is crucial for accurate tax reporting. Let's break down some common 1099 forms by account type and purpose.

Investment Accounts

• 1099-DIV: Dividends and Distributions
• What it reports: Dividends and other distributions from investments
• Key boxes:  
  • Box 1a: Total ordinary dividends
  • Box 1b: Qualified dividends
  • Box 3: Nondividend distributions
• 1099-INT: Interest Income
• What it reports: Interest earned from banks, savings accounts, bonds, etc.
• Key boxes:  
  • Box 1: Interest income
  • Box 3: Interest on U.S. Savings Bonds and Treasury obligations

Retirement Accounts

• 1099-R: Distributions from Pensions, Annuities, Retirement Plans, IRAs, etc.
• What it reports: Distributions from retirement accounts
• Key boxes:  
  • Box 1: Gross distribution
  • Box 2a: Taxable amount (*note: Schwab will not calculate the taxable amount as the institution does not know the amount taken for Qualified Charitable Distributions. Contact your advisor if you need help determining the taxable amount). 
  • Box 7: Distribution code(s)

Education Accounts

• 1099-Q: Payments from Qualified Education Programs
• What it reports: Distributions from 529 plans or Coverdell ESAs
• Key boxes:  
  • Box 1: Gross distribution
  • Box 2: Earnings
  • Box 3: Basis
  • Box 4: Trustee-to-trustee transfer checkbox

Miscellaneous Income

• 1099-MISC: Miscellaneous Income
• What it reports: Various types of income, including rent, royalties, prizes, and awards
• Key boxes:  
  • Box 1: Rents
  • Box 2: Royalties
  • Box 3: Other income 
• 1099-NEC: Nonemployee Compensation
• What it reports: Income for independent contractors or freelancers
• Key box:  
  • Box 1: Nonemployee compensation 

Health Savings Accounts

• 1099-SA: Distributions from an HSA, Archer MSA, or Medicare Advantage MSA
• What it reports: Distributions from health savings accounts
• Key boxes:  
  • Box 1: Gross distribution
  • Box 2: Earnings on excess contributions
  • Box 3: Distribution code

Next Steps

If you have questions about whether you should have received a 1099, but did not, be sure to consult with a tax professional, or financial advisor. Remember, this guide covers common 1099 forms, but there may be others depending on your specific financial situation. If you don't have an advisor,  call Hurlow Wealth Management Group at 812-333-4726 and schedule a time to discuss your personal situation, or click here to schedule.

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