Tax season began this week, and there’s a good chance you’ve already received one or more 1099 tax forms. But what are they for, and why do you need to pay attention to them? Let’s break it down.
A 1099 form is used to document income received outside of a permanent salaried job. This includes money earned from gig work, interest, a real estate sale or a distribution from a tax-leveraged account, such as a health savings account. Any organization or individual you received a payment from is required to distribute this tax form to you by Jan. 31 each year; an employer is also required to distribute your W-2 form by this deadline.
