There are thousands of companies that hire freelancers and self-employed individuals, as well as small businesses, to do all sorts of work. These companies send them all 1099 forms at the end of the year showing how much they were paid throughout the year. They also send these forms to the IRS to report those payments.
But there are some big companies that have built their business model on hiring a lot of self-employed people, and here are some of the biggest.
Anytime you work as an independent contractor, freelancer or gig worker for an entity, they will send you a 1099 form. There are many types of 1099 forms, but the 1099-NEC and 1099-MISC are the forms used to report the income you earned for performing contract work.
They are usually sent to individuals who are not full-time employees of a company or an entity. You will have to pay taxes on 1099 income if you earned over $400 in a calendar year. But you will only receive a 1099 form if you earn $600 or more.
While you do not need to file a 1099 form, you need the information on it to fill out your Schedule C when filing your taxes. You will also have to fill out the standard Form 1040 that every American taxpayer uses.
A 1099 form is sent to individuals who perform “non-employee” work. This includes self-employed individuals, independent contractors, freelancers and gig workers. There are, however, some exceptions to this.
If a freelancer or self-employed individual is registered as a corporation (S Corp or C Corp), they will not receive a 1099 form. If they are registered as a sole proprietor, or a Limited Liability Corporation (LLC), they will receive a 1099 form.
You can expect to receive a 1099 form from companies that use a lot of independent contractors, freelancers or gig workers for their services. These companies generally also have regular full-time employees that work a 9-5 but can hire individuals specifically for contract work.
If you find yourself receiving a 1099 form from any of the below companies, don’t worry, we’re here to help.
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FlyFin CPA Team
With a combined 150 years of experience, FlyFin's CPA tax team includes tax CPAs, IRS Enrolled Agents and other tax professionals, offering users the most comprehensive tax advice and preparation.