Form 1099 is the IRS tax form companies issue to non-employee individuals paid $600 or more in a calendar year. The form reports the income to both the recipient and the IRS. Recipients include independent contractors, freelancers, gig workers, and certain other payees like landlords, attorneys, and vendors. The most common variant is Form 1099-NEC (Non-employee Compensation) used for contractor payments; Form 1099-MISC covers miscellaneous payments like rent and prizes. It's the contractor counterpart to the W-2 form issued to employees.
The 1099 ecosystem:
Form 1099-NEC (Non-Employee Compensation): the most common form for contractors. Used to report payments of $600+ to independent contractors, freelancers, and self-employed in...