Glossary · Tax year 2026
What is Form 1099-NEC?
Form 1099-NEC is the information return a business files to report nonemployee compensation paid to contractors who are individuals, partnerships, estates or certain LLCs. For payments made in tax year 2026 the reporting threshold is $2,000 (it was $600 for 2025 and earlier). The recipient copy and the IRS filing are both due January 31.
Also called: Nonemployee compensation
Payments made by card or through a third-party network are reported by the processor on Form 1099-K instead, and payments to C and S corporations are generally not reported. A Form W-9 collected before the first payment supplies the contractor's taxpayer identification number.
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