Types of 1099 Forms

• The IRS recognizes 17 different types of 1099 forms, ranging from the 1099-A to 1099-SA. One of the more prevalent forms is the 1099-INT, which financial institutions use to report interest that they paid to you. Another one is the 1099-DIV, which reports your dividend earnings. Many business entities receive 1099-MISC forms, which report payments made to them, as well, and many business entities also need to send 1099-MISC forms to people they pay.
  
  

Corporation Exemption

• Generally speaking, you are exempt from filing a 1099-MISC to report any payments that you make to a corporation regardless of the size of the payment. There are a few exceptions, such as cash payments for fish in bulk, or attorney fees, but you generally do not have to file a 1099 for a corporation.
  
  

Small Transaction Exemption

• Although the IRS requires the recipient of income to report any income that they receive, they do not require payors to file 1099 forms for small payments. The threshold varies from $10 for royalty payments to a more typical $600 for payments to contractors, proceeds from the sale of real estate, or for the cancellation of debt. Payments below the limit are exempt from reporting.
  
  

Tangible Good Exemption

• When a business buys a service from a contractor, such as paying a freelance writer or hiring an attorney, it has to provide that contractor with a 1099-MISC. On the other hand, purchases of tangible goods such as computers, furniture or vehicles are exempt from reporting. Although the health care reform law passed in 2010 had required reporting on purchases of tangible goods, that requirement was overturned in April 2011.