TaxBandits Knowledge Base

What payments are to be reported on Form 1099-NEC?

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

With TaxBandits, you can easily file Form 1099-NEC with the IRS and choose a solution for your recipient copies in minutes. See how to file 1099-NEC