How to Report 1099 Income to the IRS
- 1). Get a copy of your 1099. The front of your Form 1099 will show any income you received and any taxes that were withheld from your income. The back of the 1099 will give you IRS instructions on where to enter these amounts on your tax form.
- 2). Obtain a Form 1040. Form 1040 is the primary tax form for reporting income to the IRS. If you get a copy directly from the IRS, you will also receive an instruction book on how to fill out the form, which is also on the IRS website. Good tax preparation software such as Turbo Tax Online Deluxe or H&R Block At Home Online will also allow you to print out a Form 1040 and help you complete it.
- 3). Match your 1099 with Form 1040. In addition to the IRS instructions, the actual wording of Form 1040 will show you where to report your 1099 income. For example, Form 1099-INT reports interest you have received from investments like bonds or savings accounts. Line 8a of Form 1040 asks you to report your taxable income, and that will be the amount shown on Form 1099-INT. Similarly, income from Form 1099-DIV should be listed on line 9a of Form 1040, labeled ordinary dividends. Other income as found on Form 1099-MISC should be listed on Form 1040 under line 21, labeled "other income."
- 4). File your taxes accurately and in a timely fashion. Although the person or company that issued you a 1099 was also required to send a copy to the IRS, you are responsible for including this information on your tax return as well. You may be subject to fines and penalties for failing to file your taxes or sending in a fraudulent return with numbers that do not match IRS records.
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