Tax Tips & Calculators

The different types of Form 1099 are used to report various types of income from interest you receive on a savings account to money you may receive when you perform contract jobs as a self-employed individual. You generally should receive your 1099 forms by Feb. 1. But Form 1099-B, Form 1099-S and Form 1099-MISC (if substitute payments are reported in box 8 or gross proceeds paid to an attorney are reported in box 14) are not due until Feb. 15.

If you have income that was subject to backup withholding, the payers of that income will show the tax withheld on Form 1099. A payer is required to withhold tax (backup withholding) at a rate of 28% if you don't provide the payer with your individual tax identification number (ITIN).

Form 1099-B

Form 1099-B is used to report proceeds from securities transactions. The securities transactions are reported on Schedule D on your tax return. Any Form 1099-B you receive may report a single transaction or multiple transactions if you have an account at a brokerage or mutual fund company. The following information shown on Form 1099-B is needed when preparing your return:

• Date of sale or exchange: This is the date the transaction took place and is used as the sales date on your Schedule D.
• Stocks, bonds, etc.: This is the amount of money you received on the sale of your securities (usually reduced by commissions — see the box next to the figure) and is reported as the sales price on your Schedule D.
• Description: This is a brief description of the asset sold and is entered on your Schedule D.

In addition, some firms provide information about the cost basis of the asset sold. This information may be used on Schedule D. Otherwise, you're responsible for computing your cost or other basis.

Form 1099-DIV

Form 1099-DIV is used to report dividends and capital gain distributions from stocks and mutual funds. The following information shown on Form 1099-DIV is needed or may be used when preparing your return:

• Ordinary dividends: This amount is entered directly on Form 1040 or on Schedule B (if required) and is taxable at ordinary income rates.
• Capital gain distributions: This amount is entered directly on Form 1040 or Schedule D (if required) and may be eligible for a lower tax rate.
• Foreign tax paid: This amount is taxes paid to a foreign government on international investments. You may claim a credit or itemized deduction for this amount, whichever is most advantageous. Check with a tax professional.

Form 1099-INT

Form 1099-INT is used to report interest income received. The following information shown on Form 1099-INT is needed when preparing your tax return:

• Interest income: This amount is entered directly on Form 1040 or on Schedule B (if required) and is taxable as ordinary income.
• Early withdrawal penalty: This amount is charged when a time investment, such as a CD, is withdrawn early. This amount is entered as an adjustment to income on line 30 of Form 1040.
• Interest on U.S. savings bonds and Treasury obligations: This interest is reported on Form 1040 or Schedule B (if required) and is generally taxable on your federal return but not taxable on your state return.

Form 1099-MISC

Form 1099-MISC is used to report many types of income. The main types — rents, royalties and non-employee compensation — generally require the use of additional forms on your tax return.

• (Box 1) Rents: Real estate rental income you receive is entered and reported on Schedule E. Rent for personal property, such as machinery, is reported on Schedule C. Income reported on Schedule C generally is subject to self-employment tax.
• (Box 2) Royalties: Income you receive for the use of property you own or work you created is entered here. This income may need to be reported on either Schedule C or E. Consult with a tax professional for assistance in determining how to report this income.
• (Box 7) Non-employee compensation: Income you receive for contract labor or self-employment is reported in this box. Generally you must report this income on Schedule C and pay self-employment tax on the net profit.