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Form 1099

What is Form 1099? 

Form 1099 is a series of IRS forms used to report income you’ve received outside of typical wages, salaries, or tips—like money from freelancing, investments, or even crypto trades. Think of it as the IRS’s way of keeping tabs on “other income” that doesn’t show up on a W-2. If someone (or something, like a bank or crypto exchange) pays you $600 or more in a year for certain types of work, or hits other thresholds for things like interest or dividends, they’re usually required to send you—and the IRS—a 1099 form by January 31 of the next year (or February/March for some variants). You then use it to report that income on your tax return. As of 2025, the 1099 family has grown to include crypto-specific reporting, thanks to new rules from the 2021 Infrastructure Investment and Jobs Act. 

How Does Form 1099 Work?

Here’s the gist: someone pays you for something—say, freelance work, rent, or a crypto sale. If it meets the IRS threshold (often $600, but it varies), they file a 1099 with the IRS and send you a copy. You take that info, plug it into your tax return (like Form 1040, Schedule C, or D), and figure out what you owe. The process looks like this:  

  • Payer Reports: The business, bank, or broker fills out the right 1099 form with your name, SSN or TIN, and the amount paid.  
  • You Receive It: By early 2026 for 2025 income, you get your copy (January 31 for most; later for some like 1099-B or 1099-DA).  
  • You File: Report the income on your return, even if you don’t get a 1099—yep, you’re still on the hook if they forget to send one! 

Starting in 2025, crypto brokers join the party with Form 1099-DA, making it easier to track digital asset sales. Miss reporting it? The IRS might come knocking with penalties. 

 

IRS Forms Related to Form 1099

Here’s every Form 1099 variant tied to income reporting, based on IRS standards as of March 23, 2025:  

Here’s a table summarizing all the IRS Form 1099 variants related to income reporting, based on the glossary content provided earlier. It’s designed to be clear and concise, tailored for a U.S. audience as of March 23, 2025, and includes the purpose of each form and its specific details or tax implications. 

 

Form Purpose Details and Tax Implications
1099-A Reports acquisition or abandonment of secured property (e.g., foreclosure). Shows debt balance and property value; may trigger taxable gain/loss on Schedule D.
1099-B Tracks proceeds from broker or barter exchange sales (e.g., stocks). Lists sale price, date, often cost basis; feeds Schedule D for capital gains/losses. Due Feb 15. Pre-2025 crypto hub.
1099-C Reports canceled debt (e.g., forgiven loans). Canceled amount is taxable income (Schedule 1) unless exempt (Form 982, e.g., bankruptcy).
1099-CAP Reports payments from corporate mergers or buyouts. For shareholders; shows cash/stock received. Capital gains go on Schedule D with Form 8949. Rare for individuals.
1099-DA Reports crypto proceeds from broker transactions (new in 2025). Gross proceeds for 2025 sales (filed 2026); cost basis added for 2026 sales (filed 2027). Feeds Schedule D. Due Feb 15.
1099-DIV Reports dividends and distributions from investments. Ordinary dividends (Schedule 1) and capital gains (Schedule D). Threshold: $10+.
1099-G Reports government payments (e.g., unemployment, tax refunds). Unemployment on Schedule 1; refunds taxable if you itemized last year.
1099-INT Reports interest income from banks or bonds. Taxable interest over $10 on Schedule 1. Possible crypto link (e.g., lending platforms).
1099-K Tracks payment card/third-party network transactions (e.g., Venmo). $5,000 threshold for 2025. Business income on Schedule C; personal use may not be taxable.
1099-MISC Reports miscellaneous income (e.g., rent, prizes). $600+ threshold. Now for non-NEC income (e.g., royalties). Goes on Schedule 1 or C.
1099-NEC Reports non-employee compensation (e.g., freelance pay). $600+ threshold since 2020. Business income on Schedule C; crypto payments possible here if not via broker.
1099-R Reports retirement account or pension distributions. Taxable amount on Form 1040; penalties for early withdrawal (Form 5329). Threshold: $10+.
1099-S Reports proceeds from real estate sales. Feeds Schedule D for capital gains. Crypto payments in real estate deals reportable starting 2026.

 

Notes: 

  • Due Dates: Most 1099s are due to recipients by January 31 (for 2025 income, filed in 2026). Exceptions: 1099-B and 1099-DA due February 15. 
  • Thresholds: Vary by form—$600 is common (e.g., 1099-MISC, 1099-NEC), but $10 applies to 1099-DIV, 1099-INT, 1099-R, and 1099-PATR. 1099-K is $5,000 for 2025. Some (e.g., 1099-Q, 1099-SA) have no minimum. 
  • Crypto Tie-In: 1099-DA is crypto-specific starting 2025. 1099-B handled crypto pre-2025; 1099-S includes crypto in real estate from 2026. 1099-NEC or 1099-MISC might apply to non-broker crypto payments. 
  • Your Responsibility: Even without a 1099, you must report the income. Payers file with the IRS, so mismatches can trigger audits. 

 

Key Updates for 2025

For 2025, Form 1099-DA is the big news—crypto brokers must report your sales proceeds (filed in 2026), with cost basis added for 2026 sales (filed 2027). Form 1099-K’s threshold jumps to $5,000 after delays from $600, easing the burden on casual sellers. Form 1099-S now ties into crypto too, with real estate pros reporting digital asset payments starting January 1, 2026. Most 1099s are due January 31, but 1099-B and 1099-DA get until February 15. Miss a form? You still have to report the income—ignorance isn’t an excuse with the IRS! 

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