What payments are to be reported on Form 1099-NEC?
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Last modified 10/12/2023 5:35:41 AM EST |
Added by TaxBandits Team
Applicable To
94X
1099
W-2
ACA
W-4
The purpose of Form 1099-NEC is to report Nonemployee Compensation, which is defined as payments of $600 or more to independent contractors for their service.
Nonemployee compensation includes the following payments,
- Fees
- Commissions
- Prizes
- Awards
- Other forms of compensation for service
Other forms of compensation include the following:
- Amount paid for the trade or business
- Amount paid to any individual, partnership, cooperation, or estate
- Oil, gas payment
- Entertainment expenses
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