2009 Tax Strategy XI – Be prepared to receive your 1099

Form 1099s are the counter part to the W-2s, they are for payments made by all types of business and nonprofit organizations for non payroll payments like interest, dividends or self employment income. There are 16 different types of 1099s and are due to recipients by February 1, 2010 and copies to the IRS by March 1, 2010. Listings of these are at the bottom of this blog.

One of the more prevalent 1099s is the 1099-MISC, which is for Miscellaneous Income. 1099-MISC covers the following:
(1) Royalties or broker payments in lieu of dividends or tax-exempt interest
(2) Services - If you received less than $600 in the year a 1099 is not required
(3) Rents
(4) Prizes and awards
(5) Other income payments

Payments to Corporations are exempt except for the following:
(1) Medical and health care payments
(2) Fish purchases for cash. “Fish” means all fish and other forms of aquatic life
(3) Attorneys’ fees
(4) Substitute payments in lieu of dividends or tax-exempt interest
(5) Payments by a federal executive agency for services

There are detailed rules in preparing and filling a 1099. To get more detailed information, visit the IRS web site www.irs.gov/pub/irs-pdf/i1099gi_09.pdf

Listing of 1099s
Form 1099-A: Acquisition or Abandonment of Secured Property
Form 1099-B: Proceeds from Broker and Barter Exchange Transactions
Form 1099-C: Cancellation of Debt
Form 1099-CAP: Changes in Corporate Control and Capital Structure
Form 1099-DIV: Dividends and Distributions
Form 1099-G: Certain Government Payments
Form 1099-H: Health Coverage Tax Credit (HCTC) Advance Payments
Form 1099-INT: Interest Income
Form 1099-LTC: Long Term Care and Accelerated Death Benefits
Form 1099-MISC: Miscellaneous Income
Form 1099-OID: Original Issue Discount
Form 1099-PATR: Taxable Distributions Received From Cooperatives
Form 1099-Q: Payments from Qualified Education Programs (Under Sections 529 and 530)
Form 1099-R: Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Form 1099-S: Proceeds from Real Estate Transactions
Form 1099-SA: Distributions From an HSA, Archer MSA, or Medicare Advantage MSA