IRS Form 1099-NEC: Nonemployee Compensation
Form 1099-NEC reports payments a business made to you as a nonemployee, such as freelance or contract work. The payer sends one copy to you and one to the IRS. If the income on it is missing from your return, the IRS may send a notice proposing a change to your tax.
What this form is for
It shows pay for services from someone who was not your employer. That income is usually reported on Schedule C, and Schedule SE may apply.
When people usually use it
Contractors receive it after a year of client work. It often appears in CP2000 cases, where the IRS lists income from 1099 forms that it could not find on the return.
What to have ready
- Every 1099-NEC you received
- Your own records of client payments
- Business expense records for Schedule C
Notices that mention it
- IRS Notice CP2000: Proposed changes to your tax return
- IRS Notice CP2501: Income information doesn't match
- IRS Notice CP3219A: Notice of deficiency (90-day letter)
Related forms
- Form W-9: Request for Taxpayer Identification Number and Certification
- Schedule C: Profit or Loss from Business (Sole Proprietorship)
- Schedule SE: Self-Employment Tax
- Form 1099-K: Payment Card and Third Party Network Transactions
Read the IRS page
IRS.gov page for Form 1099-NEC (opens in a new tab). The IRS page is the final word on this form.
Frequently asked questions
What is IRS Form 1099-NEC?
Form 1099-NEC reports payments a business made to you as a nonemployee, such as freelance or contract work. The payer sends one copy to you and one to the IRS. If the income on it is missing from your return, the IRS may send a notice proposing a change to your tax.
Where do I get Form 1099-NEC?
Get it from IRS.gov. The IRS page for Form 1099-NEC, https://www.irs.gov/forms-pubs/about-form-1099-nec, has the latest revision, the instructions and any recent changes.
Do I need to file Form 1099-NEC?
That depends on your own facts. The instructions on IRS.gov explain who uses Form 1099-NEC, and any IRS letter you got may say what it needs from you. This is not tax advice.
What should I have ready for Form 1099-NEC?
Gather: every 1099-nec you received; your own records of client payments; business expense records for schedule c. The instructions on IRS.gov list everything the form asks for.
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