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Ask The Taxgirl: Forms 1099

ByKelly Phillips Erb

Taxpayer asks:

I made $400 from my freelance work.  Why didn’t I receive a form W-2?  Does this mean that I don’t have to report the income?

Taxgirl says:

You don’t receive a form W-2 if you’re classified as an independent contractor (more on that in future posts). You’ll receive a form 1099 from the paying company if you received more than $600 in compensation for your services during the tax year. You are still on the hook for reporting income even if it’s less than $600 – it’s still income. It’s easy enough to report on your return and you can take deductions to offset the income.

Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.

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Kelly Phillips Erb, known as Taxgirl, is a tax attorney, writer, and speaker who explains tax news, IRS updates, scams, financial crime, and money in plain English.

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9 Comments

  4. We paid out private money for health caregivers last year to several private caregivers. We are not a business. Must we send them 1099 forms?

    1. Without knowing the specifics, I’d say no. Individuals rarely issue forms 1099 for personal services. I’m guessing this is a run of the mill health care bill? If so, then no. Individuals generally do not issue one to doctors, nurses, pharmacies, etc., if even over $600.

  5. Is there a limit on the amount of money that can be reported via a 1099-misc form? I was told $1500 but that does not seem right.

  6. My wife has a Invesco AIM & Charles Schwab account. We received a 1099-Div from AIM nothing from Charles Schwab should we have? They both lost is there anyway that can be recouped??

  7. hello taxgirl i have started a new job as a secretary my managerhas aked me to find info about 1099 forms every time i try to look for info on it all i see is how to buy the cd for 19.99 can you plaese help me answer a few questions???????

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