Tax Form 1099: What It Is, Why You Got One, and What To Do Next

Quick summary (for real-world use):

  • 1099s report income that isn’t on a W‑2 (gig work, contract pay, interest, dividends, retirement distributions, etc.).
  • The IRS and state tax departments use 1099s to match what payers report against what you report on your tax return.
  • If you’re missing a 1099, contact the payer first, then the IRS if needed.
  • If a 1099 is wrong, you typically ask the payer to correct and re‑issue it.
  • You usually still must file your tax return on time, even if a 1099 is late or incorrect.

Rules and thresholds can change and may vary by state or by your exact situation, so always check current guidance from the IRS or your state tax agency.

1. What a 1099 Actually Does For (and To) You

A Form 1099 tells the IRS (and often your state tax department) that you received certain kinds of income during the year, usually from a business or institution that paid you.

You typically get a 1099 if you had non-employee income, such as contract work or gig work, or certain types of financial income like bank interest, dividends, or retirement account withdrawals; if you got one, you are generally expected to report that income on your tax return, even if you never received the paper form or the amount seems small.

Key terms to know:

  • Payer — The business, bank, or organization that issues the 1099 and paid you money.
  • Recipient — You, the person or business that received the income reported on the 1099.
  • Information return — A form (like a 1099) that reports payments to the IRS; it is not a tax bill by itself but can trigger one if you underreport.
  • Backup withholding — Federal income tax a payer may withhold (often 24%) if you didn’t provide a correct taxpayer ID, which may show up on your 1099.

2. Where 1099s Come From and Who Runs the System

For 1099s, the main “official systems” involved are:

  • The Internal Revenue Service (IRS) — receives electronic 1099 copies from payers, uses automated matching to compare them to your federal return, and can send notices if there are mismatches.
  • Your state department of revenue or taxation — often receives matching 1099 data and can issue state-level notices or adjustments.

Typical real-world flow:

  1. A payer (for example, a gig app, your landlord paying you a referral bonus, a bank, or an investment firm) decides you met the reporting threshold for a specific 1099 type.
  2. By late January (or sometimes mid-February, depending on the 1099 type), they send you a copy and submit a copy to the IRS (and often to your state tax department).
  3. When you file your tax return, the IRS’s system compares your return to the 1099s it received; if your reported income is lower than what was reported on 1099s, you can receive a notice months later.

Typical 1099 types you might see:

  • 1099-NEC — Nonemployee compensation (gig work, freelance, contract work).
  • 1099-MISC — Other payments (rents, royalties, prizes, etc.).
  • 1099-INT — Interest from banks and similar institutions.
  • 1099-DIV — Dividends and certain distributions from investments.
  • 1099-R — Distributions from pensions, IRAs, and some retirement accounts.

3. Documents You’ll Need and How to Handle Missing or Wrong 1099s

Documents you’ll typically need:

  • All 1099 forms you received (1099-NEC, 1099-MISC, 1099-INT, 1099-DIV, 1099-R, etc.).
  • Year-end statements or transaction history from payers (gig apps, payment platforms, banks, brokers) to double-check 1099 amounts.
  • Your prior-year tax return to compare payer names and spot if something new or missing appears.

1099 forms are usually mailed or provided electronically by January 31 for most types, though some (like certain 1099-B or 1099-S) can arrive later in February; if you haven’t received one by mid-February, it’s reasonable to start following up.

If you’re missing a 1099:

  • Step 1: Contact the payer using the customer support contact or number on past statements and ask if a 1099 was issued, to what address/email, and for what amount.
  • Step 2: If you cannot get it from the payer, you can call the IRS individual taxpayer line after mid-February; they can typically see whether a 1099 was filed under your Social Security Number and may send you an income transcript later.

Here is a simple phone script you can adjust:
“I’m calling because I believe a Form 1099 should have been issued to me for last year, but I didn’t receive it. Can you confirm whether one was filed under my name and SSN, and how I can get a copy or corrected version?”

If a 1099 is wrong (for example, the amount is too high, the tax withheld is wrong, or your SSN is incorrect), you usually must request a corrected 1099 from the payer; the IRS generally expects the payer, not you, to issue corrections.

4. Step-by-Step: What To Do With a 1099 Right Now

4.1 Immediate steps

  1. Gather all your 1099s and related records.
    Put together every 1099 you received plus bank statements, gig app earnings summaries, brokerage year-end statements, and retirement account statements so you can compare amounts.

  2. Check each 1099 for accuracy.
    Verify your name, address, SSN/ITIN, and dollar amounts against your own records; if numbers don’t match your records, contact the payer in writing (email or secure message) and request a corrected form.

  3. Include the income on your tax return, even if a form is missing.
    If you know you received income that should be reported on a 1099 but the form never shows up, you typically still must report that income based on your own records when you file; don’t skip it just because the paper isn’t in your hand.

  4. File your tax return by the deadline or request an extension.
    If you are waiting on a late or corrected 1099, you may choose to file an extension; however, an extension to file is not an extension to pay, so you should estimate tax due and pay by the regular deadline to reduce penalties and interest.

  5. Keep copies of all 1099s and supporting evidence.
    Store digital or paper copies of each 1099 along with statements that support the amounts reported in case the IRS or your state tax department sends a notice later; this can make responding much faster and less stressful.

4.2 What to expect next

  • After you file your return, the IRS’s matching system may take several months or more to compare your reported income against 1099s submitted by payers; if everything matches closely, you may hear nothing more.
  • If the IRS or state system flags a difference, you may receive a notice showing “CP2000” or similar, listing the 1099 income they think is missing; you’ll typically have a deadline to respond with agreement (and payment) or an explanation and documentation.
  • If you requested a corrected 1099, the payer usually sends the correction to both you and the IRS; if you already filed using the old numbers, you may need to file an amended return once the correct information is available.

5. Real-World Friction to Watch For

Real-world friction to watch for

A common snag is when gig workers or small contractors only look for a single 1099-NEC but actually receive income through several platforms, some of which may not send a 1099 if they think the total is below a reporting threshold; however, that income is still typically taxable. This often leads to IRS notices later because your bank deposits or platform summaries show more income than what you reported, so always total up all earnings (1099 or not) from your own records, not just the forms you receive.

6. Where to Get Legitimate Help With 1099 Problems

If you feel stuck, there are several official and reputable help options that typically handle 1099 questions:

  • IRS Taxpayer Assistance Centers (TACs):
    You can search for your nearest IRS walk-in office and usually must schedule an appointment by phone; TAC staff can review IRS records of 1099s filed under your SSN, explain notices, and help you understand next steps, but they do not usually prepare full returns for you.

  • Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE):
    These are IRS-sponsored free tax preparation programs, usually run out of community centers, libraries, and nonprofits; volunteers are trained and certified and can often handle basic to moderate 1099 situations (like simple freelance work or retirement distributions), especially for low-to-moderate income taxpayers and older adults.

  • State tax department taxpayer assistance offices:
    Your state’s department of revenue or taxation typically has a call center and sometimes local offices; they can explain how a specific 1099 affects your state return, help with state notices, and outline payment plan options if additional state tax is owed.

  • Reputable enrolled agents, CPAs, or tax attorneys:
    For more complex 1099 issues (multiple businesses, large underreported amounts, or IRS notices you disagree with), you may want to hire a licensed tax professional; always verify credentials and look for professionals listed on official regulatory or licensing sites.

Because 1099s involve your identity and financial information, be cautious about scams: look for sites and email addresses ending in .gov when searching for IRS or state tax offices, and be wary of unsolicited calls or messages that demand payment or ask you to send photos of your ID or Social Security card; when in doubt, hang up and call the official number listed on the government website yourself.

Your most concrete next action today: locate every 1099 you received this year, compare them to your own earnings records, and make a list of any payers you need to contact for a missing or corrected form, then call or message those payers before you file your return.