1099: The 'other' tax form

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As you eagerly compile those W-2s for tax season, don't forget the "other" tax forms.

  Staff
Staff

The 1099. No, not the year Jerusalem was under siege in the First Crusades, but the IRS form used to report everything from contract income to bank interest.

E.J. Maddocks is a certified public accountant for Augusta firm Serotta Maddocks Evans and Co. In his experience, people end up getting more 1099s than W-2s, especially those with one job but several savings accounts.

You should have all of your 1099s. They're due to recipients by the end of January, the same as W-2s.

There are 19 variants of the form to cover the circumstances for receiving payments or income.

"Some you'll never see in your lifetime, there are some weird ones out there," Mr. Maddocks said, such as the 1099-CAP for changes in corporate control and capital structure, or the 1099-PATR for taxable distributions received from cooperatives.

The most common 1099 filed -- 32 percent of them, according to the IRS -- is the B variant for reporting broker and barter transactions -- your stocks and bonds.

Brokerage houses won't send one for every stock that was traded; they'll show the year's activity, gain or loss. Mr. Maddocks said the problem with 1099-Bs comes from when people change brokerage houses or when original stock prices aren't available.

Second most common is the 1099-INT variant for interest income in certificates of deposit, money markets or savings accounts. About 17 percent of all 1099s are filled out for that purpose.

Dividends and interest are the most commonly seen by Mr. Maddocks.

"Occasionally we see, because we're in Augusta, one that a company would issue if someone is renting their place for Masters," Mr. Maddocks said. They get a 1099-Miscellaneous, and the money earned usually washes out as nontaxable because the rent was for less than 14 days.

You don't have to mail them in with the tax return (those of you in the minority who still send them in by mail) but you need to make sure you've got that information in the tax return.

"If you get a 1099 for anything, right or wrong, you have to report it," Mr. Maddocks said.

The government has a computer program that will match W-2s and 1099s against what is submitted in tax returns, so the IRS will know if something isn't reported.

What is important to know about the form is that not all of the money reported on it necessarily must have taxes paid on it.

Take gambling earnings, for example. Mr. Maddocks said a casino will issue a 1099 for the person hitting a $1,000 jackpot. If that person blew all the winnings while gambling, a note would be made on the tax return.

Reach Tim Rausch at (706) 823-3352 or timothy.rausch@augustachronicle.com.

VARIANTS OF THE 1099

1099-A: Acquisition or Abandonment of Secured Property


1099-B: Proceeds from Broker and Barter Exchange Transactions


1099-C: Cancellation of Debt


1099-CAP: Changes in Corporate Control and Capital Structure


1099-DIV: Dividends and Distributions


1099-G: Government Payments


1099-H: Health Insurance Advance Payments


1099-INT: Interest Income


1099-LTC: Long Term Care Benefits


1099-MISC: Miscellaneous Income


1099-OID: Original Income Discount


1099-PATR: Taxable Distributions Received From Cooperatives


1099-Q: Payment from Qualified Education Programs


1099-R: Distributions from Pensions, Annuities, Retirement Plans, IRAs, or Insurance Contracts


1099-S: Proceeds from Real Estate Transactions


1099-SA: Distributions From an HSA, Archer MSA, or Medicare Advantage MSA


1042-S: Foreign Person's U.S. Source Income


SSA-1099: Social Security Benefit Statement


RRB-1099: Payments by the Railroad Retirement Board


RRB-1099R: Pension and Annuity Income by the Railroad Retirement Board


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