1099-NEC
1099-NEC
Nonemployee Compensation
Every line is explained below in plain English — click any line to see what it means, who needs to fill it in, and what people commonly overlook.
Nonemployee Compensation
- 1 Nonemployee Compensation The total amount a business or client paid you during the year for services you performed as an independent contractor, freelancer, or self-employed...
- 2 Payer Direct Sales Indicator A checkbox indicating whether the payer made $5,000 or more in direct sales of consumer products to you for resale.
- 3 Excess Golden Parachute Payments The amount of excess golden parachute payments made to you during the year.
Federal Tax Withheld
State Information
- 5 State Tax Withheld State income tax that was withheld from your nonemployee compensation payments.
- 6 State/Payer's State Number The two-letter state abbreviation and the payer's state tax identification number.
- 7 State Income The amount of nonemployee compensation that is subject to state income tax in the state listed in Box 6.