What Is a 1099 Form Used for?

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A 1099 form is used for reporting non-employee compensation to the IRS, and it is generally filed for contract work that has been done for a company. Report income from a 1099 to avoid getting in trouble with the IRS using tips from an investment portfolio manager in this free video on tax forms.

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Video Transcript

So, what is a 1099 form used for? The 1099 is an IRS form for reporting taxes, and it's for reporting non-employee compensation. So, if you had a job that you did on a contractual basis where you're not actually an employee of the company, but they did pay you money for your services, let's say for example, you were hired on a temporary basis to speak about certain subjects for a video company. And the video company paid you money. You would need to pay a 1099, you know, file a 1099 form with your taxes at the end of the year to report that income, because you're not an employee of the company but you are, actually, doing some work for a compensation. And the other thing to remember if you need to file a 1099 is to make sure that that does get taken care of. As much as we'd like to think that we can make some compensation, do some work and not have to report that to the IRS, they generally do know what we're up to in terms of our income. So, make sure that that's taken care of in a timely fashion when you file your taxes every year.


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