What payments are to be reported on Form 1099-NEC?
547 views |Last modified 10/12/2023 5:35:41 AM EST | Added by TaxBandits Team

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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