A tax form used to report income paid to a non-employee, such as a freelancer or independent contractor.
There are several types of 1099 forms depending on the income source; 1099-NEC is used for nonemployee compensation and 1099-MISC covers certain other payment types. Businesses generally must issue a 1099-NEC to any contractor paid above a threshold set by the IRS during the tax year. Recipients use it to report income even though no tax was withheld.
Not to be confused with: A W-2, which reports wages and withheld taxes for employees.
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