Function

• Traditionally, a W-2 form is used to report income. A 1099 tax form is like a W-2 in that a 1099 form is the official record of the income that you have received from a particular source during the tax year.
  
  

Significance

• A 1099 form thus takes the place of the W-2 form when having you taxes prepared. The tax preparer places the information in the appropriate spaces on the 1040 forms. Afterward, the preparer applies for the refund anticipation loan or rapid refund.
  
  

RAL

• A refund anticipation loan (RAL) is a loan, but not one based on income or credit score. The RAL eligibility is based on the amount of the refund. Like any other loan, some people are denied the RAL.
  
  

Limitations

• You cannot receive a RAL if you are a member of the armed forces or filing a tax return on behalf of a deceased person.
  
  

Can You Get a Rapid Refund on a 1099?

• Yes, you can if you are eligible and the bank approves your application.