All Types of 1099s Explained - YouTube

Hi everyone. I'm Ara Oghoorian with ACap Advisors  and Accountants, and welcome to another edition of  

the ACap ReCap, where we go behind the blog and  answer some of your most important questions.  

Today, we're going to talk about the different  types of 1099s, that you may receive early in the  

year, and what you have to do with them, when  it comes to your taxes. But, before we begin,  

remember to subscribe, like and share our channel,  and if there's a topic, that you want us to cover,  

be sure to include it in the comments  section below or send us a message,  

and we will cover it in a future webinar.

The three common types of 1099s you might receive  are a 1099-INT, 1099-DIV and a 1099-B. So,  

let's go through each one of them! The 1099-INT  is issued, when you receive interest income. So,  

let's assume you have a bank account and  you receive interest throughout the year  

or a savings account, you're going to get a  1099-INT at the end of the year, that's going  

to show how much interest you receive, and you  have to report on your tax return. The 1099-DIV is  

to report any dividend income you receive during  the year, and that's going to be split up between  

qualified dividends and non-qualified dividends,  and if you're interested in learning more about  

the difference between qualified, non-qualified  dividends, check out my other video I did, where  

I talk about the difference between qualified and  non-qualified dividends. The other 1099, that you  

might receive, is a 1099-B, that's to report any  stock sales, that you've had or commodities or  

options, contracts, that you might have  sold during the year. Most of the time,  

you'll see all three of these combined into  one statement, called a Consolidated 1099,  

issued by your brokerage account, such as  Charles Schwab or Fidelity or TD Ameritrade.  

Another type of 1099, that you may see,  is a 1099-R. A 1099-R is issued, when you  

have distributions from an annuity, an IRA, a  pension plan or any type of retirement account,  

included an insurance contract. Most of the time  you'll see this, if you do a backdoor Roth IRA,  

you'll get a 1099-R or if you have a money  that's withdrawn from an inherited IRA,  

you'll see a 1099-R, but most of the time  a 1099-R is issued, if you have any kind of  

withdrawals from a retirement account. Another  type of 1099 you may encounter is a 1099-S,  

that is used, when you have the sale of real  estate. So, if you sold any real estate during the  

year, the brokerage house or the escrow company  is most likely going to issue you a 1099-S,  

that's going to show the date of the sale, how  much percentage you received from the sale,  

the address of the property, and if there's any  real estate taxes paid during the closing of the  

property. Another type of 1099 you may encounter  is a 1099-G. The 1099-G is issued by governments,  

if there's any government payments, such as state  or local tax refunds, unemployment benefits or any  

taxable grants. Most people get this, if they  have a state refund, and they'll get a 1099-G,  

and they're supposed to report that 1099-G on  their tax return to see, if any portion of that's  

going to be taxable. Another very common type of  1099 is either the 1099 Miscellaneous (MISC) or  

the 1099-NEC, which is relatively new. These types  of 1099s are issued for non-employee compensation,  

which are common for the gig economy, people,  who are contractors, independent consultants,  

but they're also used for payments of rental  income or royalties or any type of compensation,  

like that that's non-wage related, if someone  receives, if you receive a 1099-MISC or 1099-NEC,  

most likely you're gonna have to file, what's  called, a schedule C on your tax return and  

pay self-employment tax or file a schedule E on  your tax return for any rental property income or  

royalty income. Now let's talk about some of the  least common 1099s you might receive. One of them  

is a 1099-C. The 1099-C is used to issue, when  there is a cancellation of debt. So, for example,  

let's assume, that you owed a bank a $100,000, and  they decided they want to cancel that debt, that  

bank is going to issue you a 1099-C of a $100,000,  and that amount is gonna be taxable to you,  

because it's no longer payable by you. Another  least common 1099 you might receive is a 1099-SA,  

where it reports any distributions from a health  savings account. Another least common or less  

common 1099 you might see is a 1099-K, and a  1099-K is used to report any transactions, that  

you may have online, and are paid with a credit  card. So let's assume you sell something on eBay,  

and people pay you with a credit  card, and you receive money that way,  

eBay is going to issue you a 1099-K, that's going  to show all the credit card payments, that you  

received through their online portal. And then,  the last one, that we want to cover, is a 1099-Q,  

and that is to report any distributions from  a 529 plan or a qualified tuition plan or a  

Coverdell Education plan. If you have one of those  plans and you have money withdrawn from it to pay  

for education, you should receive a 1099-Q, and  that's going to be reported on your tax return.