Form 1099-NEC (Nonemployee Compensation)
- Should be used to report:
- Payments of $600 or more for:
- Services (including parts and materials) performed by someone who is not your employee– Box 1
- Cash payments for fish (or other aquatic life) purchased from anyone engaged in the trade or business of catching fish – Box 1
- Payments to an attorney – Box 1
- Payments of $600 or more for:
- Each person from whom you have withheld any federal income tax under the backup withholding rules regardless of the amount of payment.
- Should NOT be used for:
- Payments made to corporations including an LLC that is treated as a C or S Corporation. Note: Payments to medical labs and legal corporations must be reported regardless of entity type.
- Payments for merchandise
- Payments reported on form W-2 (such as wages to employees)
- Payments to one individual totaling less than $600 ($10 if royalties)
- Payments made by credit card to any applicable vendor for 1099 purposes
Form 1099-MISC
- To report payments made in the course of business of $600 or more such as rents, prizes and awards, medical and health care payments, and gross proceeds paid to an attorney. Please note: Regular attorney fees for services are reported on Form 1099-NEC.
Form 1099-INT
- To report payments of interest of $10 or more.
Form 1099-DIV
- To report payments of dividends of $10 or more.
Form 1099-R
- To report distributions of $10 or more from pension plans.
