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Instructions for Recipient. You received this form instead of Form W-2 because the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax.
Nonqualified deferred compensation (box 15). You may either file Form 1099-MISC (box 7) or Form 1099-NEC (box 2) to report sales totaling $5,000 or more of consumer products to a person on a buy-sell, a deposit-commission, or other commission basis for resale.
Information about Form 1099-NEC, Nonemployee Compensation, including recent updates, related forms, and instructions on how to file.
Businesses use IRS Form 1099-NEC to report non-employee compensation of $600 or more, or whenever they withhold federal income taxes. In this article, we'll look at the details of Form 1099-NEC, including its purpose, reporting obligations, and how it affects both businesses and independent contractors.
A 1099-NEC form (non-employee compensation) is an IRS tax document that reports payments made by businesses or individuals to independent contractors or non-employees. The paying party must issue a 1099-NEC if payments during a calendar year exceed $600, and the recipient must use the form to report their income when filing taxes.
The 1099-NEC is the Internal Revenue Service (IRS) form to report nonemployee compensation—that is, pay from 1099 independent contractor jobs (also sometimes referred to as self-employment income). Examples of this include freelance work or driving for companies like Uber, Lyft, or DoorDash.
The process of filing your taxes with Form 1099-NEC is a little different than if you only had income reported on a W-2. Here's some tips to help you file. The IRS is gradually phasing in new 1099-K reporting requirements for payments from third-party processors like Venmo and Paypal.