Who gets a 1099-NEC?
If a business paid you for services in the course of its trade or business and you aren’t its employee, it must send you a 1099-NEC when the payments reach the reporting threshold. This includes freelancers, consultants, contractors and many gig-type engagements paid directly by a business. Payments to corporations are generally not reportable, with exceptions, and payments by credit card or payment app are reported on a 1099-K instead.
The reporting threshold
For payments made before 2026, the threshold was $600. For payments made in 2026, the IRS says the threshold is $2,000, and it is indexed for inflation beginning in 2027. That threshold determines when a payer must file; it does not change your obligation to report income. You must report all self-employment income on your return even if no form was sent. Verify the current threshold in the IRS instructions for Forms 1099-MISC and 1099-NEC.
Deadline
Payers must furnish the 1099-NEC to recipients and file with the IRS by January 31 (next business day if it falls on a weekend). If you haven’t received one by early February, contact the payer; use your own records meanwhile.
What’s on the form
- Box 1: nonemployee compensation.
- Box 4: federal income tax withheld (rare; occurs with backup withholding).
- Boxes 5–7: state tax information.
How to report 1099-NEC income
Most recipients report it on Schedule C (Profit or Loss From Business) and calculate self-employment tax on Schedule SE. You can deduct related business expenses against it. See self-employment tax and our self-employed guide. Because no tax is withheld, you may need to make estimated payments.
1099-NEC vs. 1099-MISC vs. 1099-K
| Form | Reports |
|---|---|
| 1099-NEC | Payments for services to nonemployees by a business |
| 1099-MISC | Rents, royalties, prizes, other income and some other payments |
| 1099-K | Payments through payment cards and third-party networks (see 1099-K threshold) |
What if the form is wrong?
If the amount is incorrect, ask the payer for a corrected form. If you can’t get one, report the correct amount with documentation of the difference. If you received a 1099-NEC for work you did as an employee, you may need to file Form 8919 or contact the IRS for guidance on worker classification.
If you’re the payer
Businesses that hire contractors should collect a Form W-9 before paying, track payments by payee, and file on time. See the IRS instructions for details and penalties.
Frequently asked questions
What is the 1099-NEC threshold?
$600 for payments made before 2026 and $2,000 for payments made in 2026, per the IRS. Verify for the year you are filing.
Do I owe tax if I didn’t get a 1099-NEC?
Yes. You must report all income whether or not you received a form.
Is a 1099-NEC the same as a W-2?
No. A 1099-NEC is for independent contractors; no taxes are withheld and you pay self-employment tax.
Official sources
- IRS: About Form 1099-NEC
- IRS: Instructions for Forms 1099-MISC and 1099-NEC
- IRS Publication 1099: General instructions for information returns
- IRS: Self-Employed Individuals Tax Center
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.