What Is a 1099 and What Should You Do With It?

Form 1099 Information

If you're self-employed or a freelancer, this form might already be part of your life.

But what exactly is a 1099? Let’s break it down.

🔹 What is Form 1099?

A 1099 is a tax form used to report income you earned outside of traditional employment. If you earned $600 or more for services and weren’t on a company’s payroll, you’ll likely receive a 1099-NEC.

Types of 1099 forms include:

  • 1099-NEC – For nonemployee compensation (freelancers or service providers)
  • 1099-MISC – Miscellaneous income like rent, prizes, or royalties
  • 1099-INT – Interest income from bank accounts
  • 1099-DIV – Dividend income from investments

🔹 Why It Matters

The IRS receives a copy of every 1099 issued to you, so you must report all the income shown—even if you didn’t get a physical copy.

Not reporting this income can lead to:

  • 🚨 IRS notices or audits
  • 💸 Penalties or interest charges
  • ⏳ Delays in your tax refund

🔹 What Should You Do?

  • Organize your 1099s – Keep them with your business income records
  • Track your expenses – You can deduct business costs like supplies, travel, or mileage
  • Report all income – Use Schedule C if you’re self-employed
  • Get help – A tax professional can help you file accurately and reduce your tax burden

✅ Final Thoughts

Understanding your 1099s is key to staying compliant and maximizing deductions. Don’t wait until the last minute — be proactive and keep good records.

At Naebom Business, we support independent workers, freelancers, and small business owners with reliable guidance and filing services.

Need help with your 1099s or tax filing?

Let Naebom Tax Guide help you do it right the first time.

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