How to read your 1099 | Robinhood (2024)

FAQs

How do I read my 1099? ›

First, look at the 1099-DIV; this section lists any dividend payments from securities, like stocks and ETFs, and capital gains from other securities, like mutual funds. Second, look at the 1099-INT; this lists interest income that could be generated from securities like Treasuries and certificates of deposit.

A 1099 Form documents payments from someone that typically isn't your employer. This can be an individual, business, or entity, such as the government. There are different 1099 forms that report various types of income and how they were earned.

The 1099 form is used to report non-employment income to the Internal Revenue Service (IRS). Businesses are typically required to issue a 1099 form to a taxpayer (other than a corporation) who has received at least $600 or more in non-employment income during the tax year.

Understanding Different Sections of Your 1099 Composite

For example, the 1099-DIV section details dividend income, while the 1099-INT section reports interest income. Other sections may include information on capital gains distributions, federal tax withheld, and foreign taxes paid.

Self-employed income is calculated by adding up all the income recorded on your 1099 forms. This includes 1099-NEC, 1099-MISC and 1099-K forms. The total earned income is then subject to the independent contractor tax rate of 15.3%.

Which Taxes Do 1099 Contractors Pay? 1099 contractors pay self-employment tax plus local, state, and federal income tax. Local and state taxes differ depending on your area. For example, businesses in Jacksonville, Florida are not subject to local or state income tax.

It depends. By filing a form 1099-NEC (which reports self-employment income), you will owe income tax (as there is rarely tax withheld on a form 1099-NEC) AND self-employment tax. If you are eligible for the EIC and the CTC (child tax credit), you may get a refund. These two credits are refundable.

It needs to show up as self employment income on Schedule C to count as Earned Income. So You need to take the 1099NEC out of other income and enter it as self employment.

If payment for services you provided is listed on Form 1099-NEC, Nonemployee Compensation, the payer is treating you as a self-employed worker, also referred to as an independent contractor. You don't necessarily have to have a business for payments for your services to be reported on Form 1099-NEC.

1099-MISC:

Box 1: Rents paid for $600 or more. Box 2: Royalties paid for $10 or more. Box 3: Other types of payments that are not considered wages, like prizes or awards. Box 4: Federal income tax withheld.

What are proceeds on 1099? ›

Form 1099-B, Proceeds From Broker and Barter Exchange Transactions is an Internal Revenue Service (IRS) tax form used by brokerages and barter exchanges to record customers' gains and losses during a tax year. Individual taxpayers receive the form from their brokers or barter exchange already filled out.

The first page of your Consolidated 1099 will contain your 1099-DIV, 1099-INT, and 1099-MISC summaries. The summary continues to the second page of the form. The pages that follow your summary pages contain the details of the reportable transactions that occurred within your account.

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 and 1040-SR instructions PDF.

1. Take pictures and keep track of receipts, both digital and physical invoices, credit card statements, office expenses, and other tax deductible purchases. 2. Keep an independent contractor spreadsheet to track both your income and expenses.