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

If you received a Form 1099 in the mail or electronically, it usually means someone paid you money that the Internal Revenue Service (IRS) considers taxable income, but you were not treated as an employee on a W-2. You generally must report the amount from your 1099 on your tax return, even if you didn’t get a W-2 and even if no tax was withheld.

Quick summary: Handling a Form 1099

  • Form 1099 reports income that isn’t on a W-2 (freelance, bank interest, unemployment, etc.).
  • You typically must include the amounts on your federal tax return (Form 1040).
  • If you didn’t get a 1099 but know you earned income, you usually still have to report it.
  • If information is wrong, you can ask the payer to issue a corrected 1099.
  • The main official agency involved is the IRS, plus the payer’s payroll or accounting department.
  • If you can’t afford a tax professional, look for IRS Free File or Volunteer Income Tax Assistance (VITA) through official channels.

1. What a 1099 Is and Why You Received One

A Form 1099 is a tax form businesses, government agencies, and some individuals use to report payments they made to you during the year that are usually not wages from an employer. Common examples include freelance or gig work, interest from a bank, unemployment benefits, state tax refunds, or payment app business income.

You received a 1099 because the payer is required to report what they paid you to the IRS, and they must also send you a copy so you can correctly file your income tax return; this applies even if you only did a small job or one-time gig.

Key terms to know:

  • Payer — The business, government agency, or person who paid you and issued the 1099.
  • Nonemployee compensation — Payments for work you did as an independent contractor, not as a W-2 employee (commonly shown on Form 1099-NEC).
  • Information return — A tax form (like a 1099) that reports payments to the IRS but is not itself a tax return.
  • Backup withholding — When a payer withholds a flat percentage of your payment for taxes if your taxpayer information is missing or incorrect.

2. Where 1099s Come From and How the Official System Works

The IRS sets the rules for who must issue 1099s and how payers must report them, but the actual forms usually come from the payer, not directly from the IRS. For example, your rideshare company, bank, or state unemployment office typically generates and sends your 1099.

Payers commonly submit your 1099 information electronically or by mail to the IRS and, for some 1099 types, also to your state tax department, while you receive either a paper copy by mail or an electronic copy through the payer’s website or app.

Two important official system touchpoints are:

  • IRS (federal) – Sets 1099 rules, uses the information to match what you report on your tax return, and can send notices if there’s a mismatch.
  • Payer’s payroll/accounting or benefits department – Generates and sends your 1099 and is the first place to contact for missing or incorrect forms.

If you’re not sure whether a 1099 should exist, you can log in to your payer’s official portal (for example, your gig app account or bank account) or call the number on your year-end statement and ask whether a 1099 was issued for you.

3. What You Need to Prepare Before Filing With a 1099

To properly use your 1099 information on your tax return, you’ll usually need more than just the form itself. Keeping everything in one place makes it easier to respond if the IRS or a state tax agency asks questions later.

Documents you’ll typically need:

  • Each Form 1099 you received (1099-NEC for contractor work, 1099-MISC, 1099-INT for interest, 1099-G for unemployment or state refunds, 1099-K for payment app business income, etc.).
  • Year-end statements or transaction records from payers or apps (for example, gig app earnings reports, bank statements, or payment app summaries) to cross-check totals.
  • Records of related expenses if your 1099 income is from self-employment or gig work (receipts for supplies, mileage logs, phone bills if used for work, etc.), which you may use to calculate deductible business expenses.

Because rules and required forms can vary by state or by your personal situation, your state tax agency may also expect you to use some of the 1099 information on your state return, especially for unemployment benefits or contractor income.

4. Step-by-Step: What To Do When You Get (or Expect) a 1099

1. Gather all your 1099s and related records

As a concrete action today, collect every 1099 you already have, and make a list of any sources of non-W-2 income (gigs, side jobs, bank interest, unemployment, payment apps) where you have not yet received a form but expect one.

What to expect next: When you list all income sources, you may notice gaps (for example, a gig platform where you worked early in the year), which lets you follow up with those payers before you file.

2. Contact payers for missing or incorrect 1099s

If a 1099 is missing or wrong, contact the payer’s customer service, payroll, or benefits office using the phone or message options in their official portal; a simple script is: “I’m preparing my taxes and need to confirm whether a Form 1099 was issued for my account for last year, and if so, that my name, address, and Social Security number are correct.”

What to expect next: Payers typically either resend a copy, make a correction and issue a corrected 1099, or confirm that no 1099 was required; this may take several days, and corrected forms sometimes arrive after tax season has already started.

3. Enter 1099 amounts on your tax return

When you prepare your Form 1040 (using tax software, a paper form, or a paid preparer), you will usually:

  1. Report 1099-NEC and business-related 1099-K amounts as self-employment income, often on Schedule C, and calculate self-employment tax on Schedule SE.
  2. Report 1099-INT amounts as interest income, typically on Schedule B if totals are above certain thresholds.
  3. Report 1099-G unemployment and some state refunds as income on your Form 1040, depending on your situation that year.

What to expect next: If the totals you report match what the IRS received from payers, things typically move smoothly; if there are differences, the IRS may send a letter months later asking for explanations or additional tax.

4. Keep copies and monitor for IRS or state notices

After you file, keep copies of all 1099s and your return for at least several years in a safe place. Check your mail regularly for any IRS notices or state tax letters referencing a specific 1099 year and amount.

What to expect next: If the IRS’s records don’t match what you reported, they commonly send a notice proposing additional tax, penalties, or interest; you can usually respond by mail, online (through the IRS online account system), or by phone using the instructions in the letter.

5. Real-world friction to watch for

Real-world friction to watch for

A common snag is when a payer sends your 1099 to an old address or makes a typo in your Social Security number, which can delay you getting the form while the IRS still has the incorrect information on file. You usually need to work with the payer’s payroll or accounting department to correct your details and have them issue a corrected 1099, and you may need to keep proof of those contacts in case the IRS later questions the income.

6. How To Get Legitimate Help (and Avoid Scams)

If you’re unsure how to enter a 1099 on your tax return or how to handle expenses, the main official help options are:

  • IRS Free File and forms – Through the IRS’s official website, you can typically access Free File (if your income qualifies), interactive tax tools, and downloadable instructions for specific 1099 types and schedules.
  • Volunteer Income Tax Assistance (VITA) / Tax Counseling for the Elderly (TCE) – These IRS-partnered programs commonly offer free, in-person or virtual tax prep for eligible taxpayers; search for your local VITA or TCE site on your state or city government pages or through the IRS site, then call the listed number to schedule an appointment.
  • Low-Income Taxpayer Clinics (LITCs) – Independent clinics that often help with IRS disputes, audits, or letters involving 1099 income if you qualify by income guidelines.

When searching online, look for websites that end in .gov for IRS or state tax agencies, and be cautious of anyone who promises a huge refund, asks you to send photos of your ID or Social Security card by text or email, or wants a fee based on your refund amount. You cannot apply for benefits, upload 1099s, or check official IRS status through HowToGetAssistance.org, so you should always use official portals or phone numbers for anything involving your identity or tax records.

Once you have your 1099s, related records, and a chosen help option (software, VITA, or a preparer), your next official step is to prepare and file your tax return through an IRS-recognized method and keep all your documents ready in case the IRS or your state tax department contacts you later.