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News & Advice

How Much Can You Make On A 1099 Before You Have To Claim It?

If you receive income reported on a Form 1099, you are required to report that income on your tax return, regardless of the amount. The Form 1099 is typically issued by businesses or entities that pay you non-employee compensation, such as self-employment income, interest income, dividends, or other types of income.

There is no minimum threshold for reporting income reported on Form 1099. Even if you receive a small amount of income that is reported on a 1099, you are still required to report it on your tax return. The IRS requires taxpayers to report all income earned, regardless of the source or amount.

It’s important to accurately report all income on your tax return to avoid potential penalties, interest, or other consequences for underreporting income. If you have received income reported on a Form 1099 and are unsure how to report it on your tax return, consider consulting with a tax professional or using tax preparation software to ensure compliance with tax laws.