Form 1099-NEC

Also called: 1099-NEC, Nonemployee Compensation

The IRS form businesses use to report payments of $600 or more to non-employee contractors during a tax year.

Full definition

The 1099-NEC is what freelancers, gig workers, and independent contractors receive from clients who paid them $600+ in a calendar year. It replaced Box 7 of the old 1099-MISC starting in 2020. Contractors report the total from all 1099-NECs on Schedule C line 1. Solo operators paying subcontractors must issue 1099-NECs by January 31 the following year. Missing or late 1099-NEC issuance draws IRS penalties starting at $60 per form.

Used for

freelancer income tracking
contractor tax reporting
business owner 1099 issuance

Sources

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