Which 1099 form is for independent contractors?

Form 1099-NEC
If you paid someone who is not your employee, such as a subcontractor, attorney or accountant $600 or more for services provided during the year, a Form 1099-NEC needs to be completed, and a copy of 1099-NEC must be provided to the independent contractor by January 31 of the year following payment.

Who is considered an independent contractor for 1099-NEC?

The 1099-NEC is the new form to report nonemployee compensation—that is, pay from independent contractor jobs (also sometimes referred to as self-employment income). Examples of this include freelance work or driving for DoorDash or Uber. Previously, companies reported this income information on Form 1099-MISC (Box 7).

1099-NEC
1099-NEC is the version of Form 1099 you use to tell the Internal Revenue Service whenever you’ve paid an independent contractor (or other self-employed person) $600 or more in compensation.

When to mail 1099 forms to independent contractors?

There are two important dates to remember. One is the date for mailing the 1099 form to the worker. The other is the date for reporting to the IRS. January 31, 2019, is the deadline for furnishing the 1099-MISC forms to independent contractors and service providers you paid money to during 2018.

What kind of income do I report on 1099-MISC?

Simply put, a 1099 employee is a self-employed contractor or business owner as opposed to one of your employees. What type of income do I report on a 1099 form? The 1099-MISC should be used for reporting payments to independent workers — not payments to employees. For employees, you use form W-2 instead to report employment income you paid them.

When do you not need to issue a 1099 form?

You add up all payments made to a payee during the year, and if the amount is $600 or more for the year, you must issue a 1099 for that payee. If the amount you paid the worker totals less than $600 for the tax year, then you are not required to issue a 1099 form.

What are the different types of 1099 forms?

The Internal Revenue Service (IRS) refers to the 1099 forms as “information returns.” The forms report different types of incomes individuals receive throughout the year. This includes independent contractor income, interest and dividends, government payments, withdrawals from a retirement account and 1099-C for debt cancellations.