Information returns (1099) Personal income types

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-employee during 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’s 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 will be included in your federal adjusted gross income , which you report to California.

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 got this

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 deductions 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 lets you know 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 interest 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-MISC: Miscellaneous income

You may receive a 1099-MISC if you received at least $600 for:

  • 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 your federal taxable income 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're 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.

Visit Internal Revenue Bulletin: 2014-4 for more information.