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

Last modified 7/16/2020 9:09:35 AM EST

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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