1099

What is the 1099 form?

The 1099 form is an IRS-designated form used by businesses to report payments to consultants or service providers who are paid on a contractual basis. A copy of the 1099 is provided to the contractor for preparing income taxes and documenting gross income.

Because the 1099 doesn’t factor any withholdings and deductions for income taxes, it is not considered an adequate documentation of true income qualification — at least for mortgage loan purposes. Lenders will instead focus on the adjusted gross income calculated on the tax return.

Mortgage lenders will sometimes review a borrower’s 1099, if any to confirm tax return figures.

For more information, please see also the following entries:

  • :D eductions:
  • :Gross Income:
  • :Income Tax:
  • :Mortgage Loan:
  • :Qualifying Income:
  • :Tax Return:


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