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What is a 1099-B form?

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What is a 1099-B form?

If you've ever sold stocks, bonds or other securities, you might have received a Form 1099-B (Proceeds From Broker and Barter Exchange Transactions) in the mail come tax season. As a self-employed individual, you might think that this is just another 1099 form showing you your earned income. But that’s actually not the case. Form 1099-B is a tax form used to report the sale of securities to the IRS. Basically, it's like a receipt for your stock transactions. This form is typically sent to you by brokers or other financial institutions. It has a lot of information, and can be intimidating to navigate. If you receive a 1099-B form, you’ll need to report that information on your taxes. Key takeaways:
  • Form 1099-B is used to report any transactions involving a broker that exceed $600
  • These transactions can be applied to bonds, stocks and even barter exchanges
  • Recipients of a 1099-B form must report the income on their taxes

Table of contents

Who receives Form 1099-B?...Read more

How is Form 1099-B different from a composite 1099 form?...Read more

How to file Form 1099-B?...Read more

Who receives Form 1099-B?

Anyone who has sold any kind of stocks, bonds, options, commodities or securities with a broker or brokerage firm will receive Form 1099-B. You should typically revive this form by the end of January or February 15th by the latest. Form 1099-B can do more than just track your stock market transactions. Did you know that it can also report on your bartering activities? That's right, if you've been swapping goods or services with your friends or other businesses, the IRS wants to know about it. “Barter exchange transactions,” as they're officially called, typically involve a group of people who exchange property or services without the exchange of cash. So, if you've been trading your gardening skills with your neighbor for their homemade jam or fixing your friend's car in exchange for their accounting services, be prepared for a Form 1099-B at the end of it.
Who receives <span style="background: linear-gradient(101.76deg, #19ACA4 1.98%, #3563CD 100.59%);
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Quick tip

Use a 1099 tax calculator to find tax deductions you can use to lower your self-employment taxes.

How is Form 1099-B different from a composite 1099 form?

Sometimes, you may receive a “Composite 1099 Form” from a brokerage firm. This type of form combines the information of multiple 1099 forms into one, often including Form 1099-B, Form 1099-INT and Form 1099-DIV. It’s common for composite forms to lack certain information in Form 1099-B, such as the short-term and long-term transaction check boxes. Rather than including such specifics, composite forms often categorize various transactions so that it is clear which ones are short-term and which are long-term. If you’re self-employed, you have to accurately track of all your income sources when filing your taxes. You’ll report income information on your taxes if you receive a 1099-NEC, 1099-MISC, or a 1099-K. A 1099-B form does not affect your self-employment taxes as capital gains or losses are not considered “earned income.” Tracking every piece of tax information can quickly become an overwhelming task. Why not let FlyFin help? Link your expenses and let A.I. find industry-relevant tax write-offs you can take advantage of and lower your tax bill. CPAs who are 1099 tax experts are available 24/7 on the app to answer questions and even prepare and file both state and federal tax returns for you.

How to file Form 1099-B?

Filing a 1099-B form involves reporting any capital gains or losses made from selling securities or stocks. You will use Form 8949 (Sales and Other Dispositions of Capital Assets) to record all your transactions found on Form 1099-B.
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The net short-term or long-term capital gain or loss will be then entered on Schedule D (Form 1040). You have to pay taxes on any capital gains you report. If it is a short-term gain, the income tax rate will be determined based on your tax bracket. If it is a long-term gain, the tax rate will be lower. Capital losses are not taxable, but you can use them to offset your gains and lower your taxes. For barter exchanges, you will need the fair market value (FMV) of the goods or services traded. The IRS treats this as cash, even if there was none involved in the process. This should be reported if the exchanges exceed $600.
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As Form 1099-B has a lot of information on it, it can be challenging to file correctly. You should always seek professional tax help if you are having trouble filing your taxes to ensure that you are not hit with any penalty fees.

1099 G form

The 1099-G form is used to report payments made by governments to individuals. Unemployment compensation should be reported on Schedule 1 (Form 1040).

1099 SA form

The 1099-SA form is an informational form that reports distributions from your health plan. This is filed on Form 8889 or Form 8853 and attached to Form 1040.

Form 1040

This is the most common document in the US tax system. It's the master tax return that every American fills out.

Form 1040 Schedule C

Running a business by yourself? This is the tax return 2022 schedule where you report how much (knock on wood) profit you made or how much you (heaven forbid) lost over the course of the year.

Form 1040 Schedule SE

SE stands for self-employment tax, and this is where people who make a living working for themselves or freelancing pay Social Security and Medicare taxes.

Form 8829

If you use your home for work, you can deduct things like utilities and supplies used for your home office or storage space used for inventory from your taxes. Use this form to figure out how much you can deduct.

Form 1099

If you're self-employed, this is the form that the people who pay you use to report those payments to the IRS. Here's what you need to know about it.

Losing a 1099 form

If you've lost a 1099 that was sent to you, fear not. Here's what you can do if it happens.

Form 1099-NEC

Entities that pay you for services as a freelancer or independent contractor report those payments to the IRS using this 1099 form.

Form 1099-MISC

Entities that give you other forms of income as a freelancer or independent contractor, such as prize money or money for healthcare, report those payments to the IRS using this 1099 form.

Avoid 1099-Misc

There are ways to lower the amount of tax you pay as a 1099 self-employed individual. Here are five proven strategies.

Form 1099-K

If you receive payments of $600 or more as a self-employed individual through credit card companies and payment services like PayPal, they report those payments to the IRS using this 1099 form.

Paypal

Here's how to receive a 1099-K from PayPal and how to use it to file and pay your 1099 taxes.

Shopify

Here's how to receive a 1099-K from Shopify and how to use it to file and pay your 1099 taxes.

Venmo

Here's how to receive a 1099-K from Venmo and how to use it to file and pay your 1099 taxes.

Form 1099-MISC VS Form 1099-NEC

Understand what makes these 1099 forms different from each other and what they mean for you as a 1099 freelancer, independent contractor or self-employed individual.

Form 1040-ES

This vital tax form for self-employed individuals and freelancers is how they pay quarterly taxes, which they need to estimate (ES means estimated taxes).

1099 A form

The 1099-A form is received when an owned property has been foreclosed. This form is reported on Schedule D after calculating capital gain or loss.

1099 G form

The 1099-G form is used to report payments made by governments to individuals. Unemployment compensation should be reported on Schedule 1 (Form 1040).

1099 SA form

The 1099-SA form is an informational form that reports distributions from your health plan. This is filed on Form 8889 or Form 8853 and attached to Form 1040.

Form 1040

This is the most common document in the US tax system. It's the master tax return that every American fills out.

Form 1040 Schedule C

Running a business by yourself? This is the tax return 2022 schedule where you report how much (knock on wood) profit you made or how much you (heaven forbid) lost over the course of the year.

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