Independent contractors, the IRS, and some state governments need 1099 forms. Learn how to report non-employee compensation.

A 1099 form is used for any type of work performed ... that employers are required to withhold income taxes from W-2 employees to pay the IRS –but do not withhold any taxes from 1099 employees.

You might receive this document if you have freelance work, investment income, retirement distributions or other financial ...

Employers have also issued W-2s, which report wages paid to employees. Other types of income, whether from contract work or investment income, get reported via a 1099 form. These 1099 forms start ...

VioletaStoimenova / Getty Images Payroll ... Some forms of compensation, such as business expense reimbursements for travel or meals, don't qualify as taxable wages. Employees must verify expenses ...