If you have a tax paper from someone other than your employer, you may have received a 1099. But what does the form mean, and why did you receive yours?
IRS Form 1099 is informational. This means that taxes may not be due, but you should report the information (however small) anyway. Not only does this make your return more accurate, you can decrease the risk of getting audited by the IRS and potentially avoid any penalties or other tax fees associated with underfiling.
We’ll review the facts about each type of 1099 so you can get a start on the filing season — but keep in mind each state’s income tax requirements may differ from your federal return.
