Summary:
- A 1099 reports income you earned outside of traditional employment
- There are many different types of 1099
- You’ll usually receive 1099s by mid-late February, but delays can occur
- It’s possible to receive an incorrect 1099, and a follow up corrected 1099
- You can usually access your 1099s on your online investment account portal(s), others may come by mail
What Is a 1099 Form?
A 1099 form is a tax document that reports income you earned outside of a traditional employer-employee relationship. Unlike a W-2, which you might receive from an employer, a 1099 reports income from freelance work, investments, or other sources.
Types of 1099 Forms
There are several variations of 1099 forms, each one specific to different types of income. Here are some of the most common ones you might encounter:
- 1099-NEC (Nonemployee Compensation): For payments of $600 or more to independent contractors and freelancers.
- 1099-MISC (Miscellaneous Income): For income such as rent, prizes, or legal settlements.
- 1099-INT (Interest Income): If you earned interest on a savings account or similar.
- 1099-DIV (Dividends and Distributions): Reports income from dividends or capital gains distributions.
- 1099-R (Retirement Distributions): Reflects withdrawals from pensions, annuities, or IRAs.
There are many other types of 1099s, such as 1099Gs, 1099Bs, and many more!
When to Expect Your 1099
Typically, 1099 forms are issued by January 31st for the prior tax year. For example, if you earned income in 2024, you should receive your 1099 by January 31, 2025. But of course, sometimes1099s don’t arrive on time. Some arrive as late as April! Here are a few reasons why:
- Processing Errors: The payer might encounter delays when preparing the forms.
- Outdated Contact Information: If the payer doesn’t have your current address or email, the form could be sent to the wrong place.
- Technical Issues: Problems with tax software can slow down the process.
- Mail Delays: Physical forms can get held up in transit.
- Payer Oversight: Occasionally, a payer might forget to issue a 1099.
Additionally, you may receive an incorrect 1099. It could state incorrect income amount, or contain incorrect information such as your Taxpayer Identification Number.
If you notice an error, contact the payer and ask them to issue a corrected form and talk to your tax professional. If you do receive a corrected 1099 form, you may have to amend your tax return if you’ve already filed.
How to Access 1099s from LPL Financial
If you are a West Invest client, you likely have an account with LPL Financial, here’s how to access those 1099s:
- Log In to Account View
- At the top of the screen, select ‘Documents’ from the menu options
- From the dropdown, select ‘Tax Forms’
- Download the Form(s): Select the relevant tax year and download your 1099s
- Reach Out for Help: If you don’t see your form, contact the LPL Financial customer service team
Why Are 1099s Important?
The IRS uses 1099 forms to ensure all income is reported. These forms act as a record for both you and the IRS, helping prevent discrepancies. Failing to include 1099 income on your tax return could result in penalties or an audit.
Even if you don’t receive a 1099, you’re still required to report all taxable income. If you have questions about what to report, you’ll want to discuss with your tax professional!