A Little About 1099s: Types of 1099s (1099-LTC thru 1099-SA)

Image courtesy of user stevepb on pixabay.com
Image courtesy of user stevepb on pixabay.com

This is an excerpt of a presentation I’ve given to business owners and HR professionals about Form 1099.


Let’s continue our tour of the 1099 forms.

Form 1099-LTC (Long-Term Care and Accelerated Death Benefits)

Form 1099-LTC is issued by providers of long-term care insurance. It reports payments of long-term care insurance proceeds to a policyholder.

Form 1099-MISC

The most famous 1099 of all is the Form 1099-MISC. This form reports all sorts of transactions. Most transactions use box 1 (for rents paid), box 3 (other income) and box 7 (nonemployee compensation).

Form 1099-OID (Original Issue Discount)

“Original issue discount” refers, generally, to bonds sold at a discount. Form 1099-OID is used to report original issue discounts includable in gross income for the year, if the amount exceeds $10.

Form 1099-PATR (Taxable Distributions Received from Cooperatives)

Used by cooperatives to report payments of $10 or more of dividends or other distributions to members of the cooperative.

Form 1099-Q (Payments from Qualified Education Programs [Under Sections 529 and 530])

This form is most commonly used to report payments from Section 529 plans. For example, in Iowa, this would be money withdrawn from College Savings Iowa. Form 1099-Q also reports payments from Coverdell Education Savings Accounts.

Form 1099-R (Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc.)

Form 1099-R reports when an individual withdraws money from a retirement account, such as a 401(k) or IRA, or when an individual receives an annuity payment.

Form 1099-S (Proceeds from Real Estate Transactions)

Form 1099-S reports real estate transactions such as: sales of homes and other buildings, and sales of land. The person or entity responsible for closing the sale is responsible for issuing the 1099-S.

Form 1099-S does not need to be issued in home sales where the seller meets the exclusion requirements by having owned and lived in the home for at least 2 years out of the last 5 years.

Form 1099-SA (Distributions from an HSA, Archer MSA, or Medicare Advantage MSA)

As its name implies, Form 1099-SA reports payments made to an individual out of a health savings account or a medical savings account. Taxpayers who receive a 1099-SA will need to file Form 8889 to determine if any of the payment is taxable. Payments are generally not taxable if used for qualifying medical expenses.

Other Forms in the 1099 Series

        Here are other forms that are considered a part of the 1099 series:

  • SSA-1099: Reports Social Security payments.
  • RRB 1099: Reports payments of Tier I benefits from the Railroad Retirement Board. Payments reported on this form are treated in the same manner as Social Security benefits for income tax purposes
  • RRB-1099-R: Reports payments of Tier II benefits from the Railroad Retirement Board. Payments reported on this form are treated in the same manner as pension distributions for income tax purposes.
  • Form 5498 and Form 5498-SA. Form 5498 is a cousin of Form 1099-R. It reports contributions into an IRA or SIMPLE plan, and also reports rollovers into an IRA or SIMPLE plan. Form 5498-SA is a cousin of Form 1099-SA. It reports contributions made into an HSA or MSA during the year. While these two forms go by a different number, they are officially considered part of the 1099 family.