An information return is a tax document that banks, financial institutions,and other payers send to the IRS to report payments paid to a non-employeeduring a tax year. Individuals and businesses receive 1099s.
Common income types reported on a 1099 include:
- Non-employee compensation
- Retirement income/pension
- Interest
- Dividends
- Proceeds from stock sale
An information return is not an income tax return; it is used for reporting purposes only.
1099-C: Cancellation of debt
Generally, if a debt you owe is canceled or forgiven, you must include the amount as income.
Common types of canceled or forgiven debt include:
- Credit cards
- Mortgage
- Personal loans
How to report
Federal return
Generally, an individual reports the canceled debt on the Other Income line of the federal return.
Visit IRS’s Canceled Debts, Foreclosures, Repossessions, and Abandonments (IRS Publication 4681) for more information.
California return
This income may be included in your federal adjusted gross income, which you report to California. Visit Publication 1001, for more information.
1099-DIV: Dividend income
A dividend is an amount paid by a company based on your ownership of stock.
You received a 1099-DIV to let you know how much dividend income you received in the last calendar year.
California does not have a lower rate for qualified dividends. All dividends are taxed as ordinary income.
Federal return
Report the dividend amount as income when you file your federal return.
California return
This income will be included in your federal adjusted gross income, which you report to California.
1099-G: Certain government payments
We use 1099-G to report amounts:
- Refunded to you by direct deposit or check
- Offset against other liabilities, such as:
- Tax
- Penalties
- Interest
- Credited toward estimated tax payments
- Applied to a Use Tax payment
- Intercepted by other state or county agencies or the IRS
Why you received a 1099-G
You received this form because both of the following happened:
- You claimed state income tax payments as an itemized deduction on Schedule A of your Federal Income Tax Return for the tax year listed in Box 3
- You received a refund, credit, or offset of $10 or more
1099-G is not a:
- Bill
- Notice of an additional refund
If you did not itemize or used the general sales tax deduction on your Federal Income Tax Return for the tax year indicated on Box 3, you do not need to claim the amount on the 1099-G.
You may need to report this amount on your federal return. Visit IRS’s Instructions for Form 1099-G if you need more information.
1099-INT: Interest income
1099-INT states how much interest you received in the last calendar year.
1099-INT is not a:
- Bill
- Notice of an additional refund
Types of interest income
You may have earned interest on:
- Savings accounts
- Mortgage escrow accounts
- Money market accounts
- Refunds, offsets, credits
- Out-of-state municipal bonds
How to report
Federal return
Report the taxable interest amount as income when you file your federal return.
California return
This income may be included in your federal adjusted gross income, which you report to California. Visit Publication 1001, for more information.
1099-K: Payment Card and Third Party Network Transactions
What's new this year
On November 21, 2023, the Internal Revenue Service announced a delay in implementation of the $600 reporting thresholds for third-party settlement organizations. For tax year 2023, previous reporting thresholds will remain in place. For tax year 2023 and prior years, third-party settlement organizations that issue Forms 1099-K are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions, consistent with the IRS’s recent decision to delay implementation of the new $600 threshold. In general, information return reporters should file with the FTB the same Form 1099-K that they are required to file with the IRS.
For more information, please visit the IRS website:
IRS announces 2023 Form 1099-K reporting threshold delay for third party platform payments.
Please be advised that this delay of the implementation of the new reporting requirements does not impact the requirement to issue a Form 1099-K for payments in settlement of third-party network transactions to app-based drivers for California purposes; the $600 threshold still applies to those payments.
For returns for calendar year 2023, you may receive a 1099-K if you received payments:
- From payment card transactions (e.g., debit, credit, or stored-value cards).
- In settlement of third-party payment network transactions above the minimum reporting threshold of $20,000 in annual gross payments and more than 200 transactions.
- In settlement of third-party payment network transactions above the minimum reporting threshold of $600 in annual gross payments
As of January 1, 2021, you may receive a 1099-K if you receive annual gross payments of $600 or more in settlement of third-party payment network transactions and are an app-based driver, regardless of the number of transactions.
How to report
Federal return
Report the amount indicated on the form as income when you file your federal return.
California return
This income will be included in your federal adjusted gross income, which you report to California.
1099-NEC: Nonemployee compensation
You may receive a 1099-NEC if you received at least $600 for the following:
- Nonemployee services
- Payments to an attorney
How to report
Federal return
Report the amount indicated on the form as income when you file your federal return.
California return
This income will be included in your federal adjusted gross income, which you report to California.
1099-MISC: Miscellaneous information
You may receive a 1099-MISC if you received at least $600 for the following:
- Rents
- Services you performed
- Prizes and awards
- Other income payments
How to report
Federal return
Report the amount indicated on the form as income when you file your federal return.
California return
This income will be included in your federal adjusted gross income, which you report to California.
1099-B: Proceeds from broker and barter exchange transactions
You may receive a 1099-B if you sold stock. Visit Capital gains and losses for more information.
How to report
Federal return
Report the gains or loss from stock transactions on Capital Gains and Losses, Schedule D (IRS Form 1040) of your Federal Income Tax Return.
California return
This income will be included in your federal adjusted gross income, which you report to California.
1099-S: Proceeds from real estate transactions
Generally, net proceeds from real estate transactions are taxable.
You received Form 1099-S that reports proceeds from the sale or exchange of real estate.
How to report
Federal return
Report your income when you file your federal return.
California return
Begin your California return with income taxable by federal and include any state adjustments.
Excludable income
Foster care payments (personal income tax only)
You can exclude qualified foster care payments from your gross income if you are paid by one the following:
- A state or local government
- A licensed child placement agency
This includes foster care individuals regardless of the individual's age at the time of placement.
