Form 1099 NEC

Form 1099-NEC is a tax document that's used to report the amount of income paid to an independent contractor.

A form 1099 NEC is filed and given to independent contractors by their customers or clients.

A business owner or manager who has received a 1099 From an outside entity can then use this information when preparing his or her own personal tax return. The Internal Revenue Service (IRS) requires all businesses with gross receipts over $600 per year (meaning every single dollar) to file a form 1099 NEC if they have paid at least one person more than $600 in commissions, fees, or amounts subject to backup withholding during the year.