105k views
4 votes
Why do some people file a 1099 form?

A.) They only earn salary, wages, and tips.

B.) They have no taxable income.

C.) They have income other than salary, wages, and tips.

D.) They want an extension on filing their tax returns.

User Adetola
by
4.7k points

1 Answer

12 votes

Answer:

C.) They have income other than salary, wages, and tips.

Step-by-step explanation:

A 1099 form is used to reports all other incomes outside the regular salary. The 1099 forms are used mostly by freelancers and independent contractors and not by employees. This form shows the amount paid to the contractor by their client.

The purpose of 1099 is to report to the tax authority (IRS)the amount an individual earned in a particular period. An employee should fill a 1099 form if they received earnings from sources other than their employer. An independent contractor or a freelancer with multiple will get 1099 forms from each of the clients.

User Marek Roj
by
4.1k points