What is 1099?

A 1099 form is a crucial tax document used to report income earned by an individual that is not salary or wages. This can include income earned as an independent contractor, rent payments, or other types of miscellaneous income. It is important to accurately fill out a 1099 form because the IRS uses this information to track an individual’s income and ensure that it is being properly taxed. Failing to accurately report income on a 1099 form can result in penalties and fines for both the individual and the payer. Therefore, it is important to carefully review and accurately complete a 1099 form to avoid any issues with the IRS.