What is the difference between 1099 forms and W-2 forms?
1099-MISC forms are used to report interest payments of $600 or more, such as rent, royalties, prizes, awards, fishing boat proceeds, etc. 1099-INT is used to report interest payments of $10 or more to any one person by banks, credit unions, etc. It does not include the interest pain on an IRA. 1099-R forms report all distributions from pensions, annuities, retirement funds or profit sharing plans. 1099-S forms report gross earnings for the sale of real estate. 1099-G forms report unemployment compensation, state and local income tax refunds, agricultural payments and taxable grants. There are other 1099 forms to report specific interest payments. W-2 forms are used to report wages. 1098 forms report interest on mortgages. Transmittal forms are also called Summary forms. One Summary form must be included with each grouped order of W-2s a company files. W-3s are the Summary forms for W-2s. 1096s are the Summary forms for 1099s.
