1099 Tax Form Deductions
Form 1099 summarizes certain payments you made to individuals or businesses during the year. There are many different 1099s, however, the one thing they all have in common is that they are all informational returns. You may receive a Form 1099-MISC if you provided services to a business, a Form 1099-INT if you earned interest income, a Form 1099-K if you received payments through a third party network such as paypal or Airbnb, or a 1099-G if received payments from the Government, like your tax refund. While it may seem confusing, generally the most relevant 1099 for sole proprietors and entrepreneurs is Form 1099-MISC, which reports each person who you have paid over $10 in royalties or $600 in rents or services (amongst other things) to. You can think of the 1099-MISC as a W2 for contractors; if you are a business it is important you issue these, if you provide services for others it is important you receive these.