Do I have to claim a 1099 form on my
Some people receive 1099 forms and wonder
'do I have to claim a 1099 form on my taxes'. There are many
types of 1099 tax forms and they are for different
If you have received a 1099 form, then you
must use the information on that 1099 form to file your tax
return. For example, if you received a 1099-MISC for
miscellaneous income, then you have to report that income to
the IRS. The IRS will want to know if you received a 1099 form
for that source of income.
Using tax software to claim a 1099 form on
If you are filing online using a tax
software such as Turbo Tax or Taxcut (you can file your taxes for
free here), then the tax software will take care of the
1099 form for you. The software will ask you about all the 1099
forms that you have received. You need to input the information
as seen on the 1099 forms into the tax software and let it
calculate your tax liabilities.
What happens if I do not claim a 1099 form
on my taxes?
If you received a 1099 form, then you must
report whatever information on that form to the IRS on your tax
return. The company that sends you the 1099 form should already
have made sure that all the information is correct and that
they are all reportable transactions that must be reported to
If you find that the information on the 1099
form is incorrect or the transaction is not required to be
reported to the IRS, you must take it up with the company that
sent you the 1099 form. If you do not have the company correct
the information and sent you a brand new, corrected 1099 form,
then the IRS may have the wrong information and will think that
you owe more than you actually do.
When the IRS tries to match information on
your tax return to the 1099 forms they have on file and they do
not match, the IRS will send you a letter demanding the
difference in tax liabilities. If you have a corrected 1099
form, then you can send that to the IRS as a proof that you are
correct. However, if you do not have the 1099 form, you will
not have a proof and may end up having to pay more taxes.
So, if you receive a 1099 form, you must
report it on your tax return to avoid a problem later on. If
you think there is a mistake on your 1099 form or you should
not have received it, take the matter up with the company
because it is likely that you will have to prove to the IRS
later why you did not claim it on your taxes.