When is a 1099 issued?

A 1099 form is issued when a business or individual pays an independent contractor, freelancer, or other non-employee $600 or more in a calendar year for services rendered. It is also used for various types of income, such as interest, dividends, and rental income. The form must be provided to the recipient by January 31 of the following year and filed with the IRS. Different types of 1099 forms exist for various income situations, such as 1099-NEC for non-employee compensation.