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Tax & Compliance
1099 Form
Definition
A US tax form reporting income paid to non-employees such as contractors and freelancers.
Overview
Form 1099-NEC reports payments of $600 or more to independent contractors. Businesses must file with the IRS and provide copies to recipients by January 31.
Example
A company that paid a freelance designer $5,000 must send them a 1099-NEC by January 31.
Best Practices
Track contractor payments, collect W-9s before paying, and file 1099s on time.
Common Mistakes to Avoid
Not collecting W-9s
Missing filing deadline
Incorrect amounts
Frequently Asked Questions
When do I need to send a 1099?
When you pay an unincorporated contractor $600 or more in a calendar year.