Form 1099-NEC: Nonemployee Compensation

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Use Form 1099-NEC to report nonemployee compensation paid to independent contractors and other self-employed workers.

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If you provide services to a business as an independent contractor rather than an employee, the money you earn is considered nonemployee compensation. Writers, consultants, landscapers, graphic designers, and many other self-employed professionals commonly receive Form 1099-NEC from the businesses they work for.

Beginning with the 2026 tax year, businesses generally issue Form 1099-NEC if they paid you more than $2,000 in nonemployee compensation during the year, up from $600 in previous years.

Unlike employees, independent contractors generally don’t have federal income tax, Social Security, or Medicare taxes withheld from their payments. Instead, they’re responsible for reporting the income and paying any taxes that apply. Form 1099-NEC is one of several Forms 1099 that report different types of income to both you and the Internal Revenue Service.

Use Form 1099-NEC together with your business records when preparing your federal income tax return. Keep the form with your tax documents and compare the amount reported with your own records to ensure all income is reported accurately.