1040 vs 1099 Forms: What’s the Difference?

When it comes to filing your taxes, understanding the difference between Form 1040 and Form 1099 can save you time and confusion.

Read on to learn more about these tax forms, what they’re used for, and what to do with your 1040 and any 1099s you may have received.

Key Takeaways: Form 1040 vs 1099

• What is Form 1040? A 1040 form is used to report all income for the year to the IRS and reconcile your tax due with the taxes you’ve already paid through estimates and withholding.
• What is Form 1099? There is a fairly wide variety of 1099s that taxpayers can receive (and, in some cases, must issue). The one commonality is that they are all used to show income received that should be reported on Form 1040.  
• You should receive most 1099s by January 31.
• Generally you need to file a Form 1040 by April 15 unless you have filed an extension.
• If you are a small business owner, you may also be required to file 1099s for payments you’ve made to independent contractors.  If you are required to file a 1099, you must do so by January 31.  

Form 1040 overview

Form 1040, US Individual Tax Return, is the form you fill out when you file your taxes at the end of the year. On this form, you’ll need to report your:

• Filing status
• Income
• Dependents
• Deductions
• Credits
• Payments

Whether you’re an employee, a small business owner, a retiree, or an investor, you need to file Form 1040 to report your income to the IRS unless your income is below a certain threshold per income tax filing requirements.

Types of 1040 forms

While the standard 1040 form is what you use to file your individual tax return, there are several types of 1040 forms, including:

1040-ES

If you’re an independent contractor who’s required to pay quarterly estimated taxes, you can use Form 1040-ES worksheets to calculate your estimated taxes. Any income that’s not subject to withholding should be included in your calculation.You can also use TurboTax’s tax calculator to determine how much your tax liability may be during the year.

Independent contractors who expect to owe at least $1,000 in taxes at the end of the year are typically required to pay estimated quarterly taxes to account for self-employment taxes. 

The same rule applies to taxpayers that have owed $1,000 or more upon filing their last tax return. The IRS will expect these taxpayers to either increase their withholdings or begin making estimated payments.

1040-NR

Nonresident aliens who do business in the US need to file a 1040-NR to report their income.

1040-X

Form 1040-X can be used to amend your individual tax return. If you entered the wrong information or calculated something incorrectly, you can use this form to correct your tax return.

1040-SR

Form 1040-SR is a special large-print version of Form 1040 that’s designed to be easier to read. You can only use a 1040-SR form if you’re 65 or older. 

1099 forms overview

When you’re looking at Form 1040 vs 1099, keep in mind that 1099s show items of income that are used to complete your 1040. Several types of income are reported on different variations of the 1099. 

Employees receive a W-2, which, along with any 1099 forms, are used to report your income on Form 1040 when filing your income taxes. It’s important to note that these items of income are reported on the same 1040, and that taxpayers do not file a separate Form 1040 for each item of income received. 

Types of 1099 forms

There is a wide range of 1099 forms — and the form you receive depends on the type of income you were paid Let’s take a closer look at what each 1099 is used for:

1099-MISC

This form is used to report miscellaneous nonemployee compensation you may have received during the tax year, including rent payments, prizes, and awards of $600 or more.

1099-NEC

If you’re an independent contractor, any businesses you worked with that paid you over $600 will send a 1099-NEC form. 

1099-K

If you used a payment company like PayPal or Cash App to receive payments for goods or services, they’ll send you a 1099-K that you can use to report that income on your tax return. 1099-Ks may also be sent to those who had gambling winnings from online betting.

1099-INT

Anyone who earned at least $10 in interest will receive a 1099-INT from the bank or investment firm they earned interest from.

1099-DIV

Taxpayers receiving dividends from brokerage firms, banks, or mutual funds will find this income on a 1099-DIV.

1099-G

1099-G is used to report income from the federal, state, or local government. If you received unemployment benefits during the tax year, you’ll get a 1099-G form at the end of the year.

1099-B

1099-B reports broker transactions, including stock sales and commodities. Many brokerage firms will consolidate forms 1099-B, 1099-DIV, and 1099-INT into one document.

1099-R

When you receive distributions of $10 or more from a pension plan or retirement plan, you’ll receive a 1099-R at the end of the year. This can also apply to some life insurance policies and annuities.

1099-S

If you sold or exchanged real estate during the tax year, you may receive a 1099-S detailing the transaction.

1099-SA

Anyone who receives distributions from a health savings, medical savings, or Medicare Advantage account will receive this form.

1099-PATR

This form is sent to anyone who’s earned at least $10 in patronage dividends or other distributions from a cooperative.

1099-SSA or 1099-RRB

Recipients of social security will receive Form 1099-SSA to detail the payments they received through the year as well as any deductions for Medicare. Similarly, railroad retirees will receive the 1099-RRB in lieu of Social Security benefits.

1099-DA

Beginning in tax year 2025, taxpayers may receive a 1099-DA. The 1099-DA reports transactions involving digital assets or cryptocurrency. Currently, some of these transactions are reported on a 1099-K. The new tax form will help provide standardization of cryptocurrency reporting.

1040 vs 1099 forms: When are they due?

If you’re required to file an individual income tax return, your 1040 is due by April 15. If it falls on a weekend or Federal holiday, it’s due the following business day. You can also request an extension to file your taxes by the April 15 due date. Your due date will be extended to October 15 (or the following business day if that falls on a weekend) if you submit your request on time.

If you’re required to file a Form 1099 as a business owner, you should file it by January 31. 

Tips for completing your income tax forms

As you get ready to file, keep these tips in mind:

Form 1040

When you’re filing your 1040, be sure to double-check all your information to ensure it’s accurate. Although many mathematical errors are corrected by the IRS during the processing of your 1040, if you made mistakes regarding your filing status, income, deductions, or credits, you should file a 1040-X.

You should also make sure you’re claiming any tax deductions and credits you’re eligible for to save money. Tax deductions lower your taxable income, while tax credits directly lower your tax bill.

Finally, it’s also important to understand the difference between taxable and nontaxable income. Make sure you know the difference before filing. Any taxable income must be reported on your 1040.

1099 forms

Generally, you’re required to file a 1099 if you made payments to a taxpayer (other than a corporation) that exceed $600 in non-employment income per year.

In addition, make sure you have 1099 forms for any nonsalary income you received. Keep in mind that even if you didn’t receive a 1099 for income you earned, you’ll still need to report it on your 1040. Tax planning can help you understand how much you’ll owe ahead of time.

Finally, your 1099s aren’t just used to complete your Form 1040—they’re also a key part of filing your state taxes as well. TurboTax makes this process simple by transferring information to your state return automatically.