The number after the dash tells you which kind you have. If you freelance, drive for an app, sell online, or just have a savings account, you may get several in one season. Payers also send these to the IRS.

This page describes what the IRS says about these forms. Whether and how to report a particular payment is a question for the IRS or a tax professional.

What a 1099 is

A W-2 covers wages from an employer. A 1099 covers most other income. The IRS says a payer who pays an independent contractor for services in the course of its trade or business generally reports the payment on Form 1099-NEC, nonemployee compensation, if the payments to that person reach the reporting threshold during the year.

That threshold changed. Older IRS pages, including the 1099-MISC overview, still show $600. But the IRS instructions for Forms 1099-MISC and 1099-NEC say that for tax years beginning after 2025, the minimum threshold for reporting certain payments increased to $2,000, adjustable for inflation starting in 2027. Check the current instructions for the year you're dealing with.

Whether or not you receive a 1099, you must still report your income. The IRS states this directly for Form 1099-K.

What's on it

The common versions, per the IRS:

Form Reports Who sends it Threshold or detail
1099-NEC Nonemployee compensation: fees, commissions, and other pay for services A business that paid you as a contractor $2,000 or more under the current instructions; filed with the IRS by January 31
1099-MISC Rents, prizes and awards, other income, medical and health care payments, attorney payments, royalties A payer who made those payments At least $2,000 for rents, prizes, and other income; $10 for royalties; $600 for attorney gross proceeds (current instructions)
1099-K Payment card and third-party network transactions Card processor, payment app, or online marketplace Card payments: no minimum. Apps and marketplaces: over $20,000 and more than 200 transactions, though you may get one below that
1099-INT Interest income Bank or other payer of interest Generally $10 or more in interest, plus certain withholding cases

Each form also lists the payer, the payer's and your taxpayer ID (see ITIN vs SSN and EIN), and boxes for amounts and any federal tax withheld. A payer may send you a 1099-K with lower amounts than the threshold. Family and friends' gifts or cost-sharing repayments shouldn't appear on one.

What to keep and for how long

Keep each 1099 you receive with that year's tax return. The IRS says generally to keep records that support an item of income until the period of limitations runs out, usually 3 years from filing. The same page lists longer periods in some cases, for example 6 years if you leave out income that is more than 25% of the gross income on your return.

Because the IRS has its own copy, compare what each form says against your own records.

  • Contractors: keep invoices and the payments themselves. A 1099 may not list everything you earned, and every dollar of income counts whether or not a form arrives.
  • Sellers on apps and marketplaces: keep your own sales and expense records for the year; the IRS says to use a 1099-K together with your other records to figure your taxable income.
  • Expenses: receipts support the deductions that offset what the form reports (see freelancer receipts and taxes).

If you're the one paying contractors, the IRS says Forms 1099-NEC go to the IRS by January 31, and the IRS says employment tax records are kept at least 4 years. For general storage, see how long to keep documents.

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