how are 1099 tax form used?

Answer 1

There are a number of 1099 tax forms and they are all reporting forms. One copy of the form is usually sent to the taxpayer so they can properly file their tax returns, one copy is sent to the IRS for their records--follow up to insure tax code is complied with, and one copy is kept by the orginator of the form.
If you receive any of these forms it usually means you need to report income on your tax return.
1099-A and 1099-C are are most often used financial companies. The 1099-A is when there is a debt on real property and borrower own's a interest in the property, but abandons the property. 1099-C is used to report a cancelation of debt. Both forms can be used only for business transaction. When one receives a 1099-C, you will in many cases have to pay taxes on the debt gain.
1099-B is for reporting Proceeds From Broker and Barter Exchange Transactions
1099-CAP is for reporting Changes in Corporate Control and
Capital Structure
1099-DIV is for reporting Dividends and Distributions
1099-G is for reporting Certain Government Payments
1099-H is for reporting Health Coverage Tax Credit Advance Payments
1099-INT is for reporting Interest
1099-LTC is for reporting Long-Term Care and Accelerated Death Benefits
1099-MISC is for reporting Misc. Income.
1099-OID is for reporting Original issue discount on U.S. Treasury obligations
1099-PATR is for reporting Taxable Distributions Received From Cooperatives
1099-Q is for reporting Payments From Qualified Education
Programs
1099-R is for reporting Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance
Contracts, etc
1099-S is for reporting Proceeds From Real Estate Transactions, to report the sale or exchange of real estate
1099-SA is for reporting Distributions From an HSA,
Archer MSA, or Medicare Advantage MSA

Answer 2

1099 forms are used to report some types of amounts paid out by a company. The report is sent to the recipient of the payment, and to the IRS. There are many types of 1099's.

If you receive one for work you did, it will be a 1099-misc and will probably have a number in the "non-employee compensation" field. This is money that was paid to you as self-employed or an independent contractor, and should match your records. You need to keep records of what you are paid since it's taxable whether or not you receive a 1099 for it.

Info from 1099's is reported by you on your tax return. The line or schedule to report it on depends on the type of 1099.