What is Form 1099 (1099-NEC)?
Form 1099-NEC is the US tax form a business uses to report payments of nonemployee compensation to an independent contractor. The contractor is responsible for their own income and self-employment taxes, because no tax is withheld as it would be for a W-2 employee. Misclassifying an employee as a contractor can lead to penalties.
Example
A company pays a freelance recruiter by invoice and reports the total on a 1099-NEC. The recruiter tracks income and expenses and pays estimated tax during the year.
Related
See independent contractor, Form W-2 and W-2 vs C2C.
Related terms and guides
Sources
- IRS, About Form 1099-NEC, https://www.irs.gov/forms-pubs/about-form-1099-nec, live official page, linked for readers; link checked 2026-10-31
- IRS, Forms and associated taxes for independent contractors, https://www.irs.gov/businesses/small-businesses-self-employed/forms-and-associated-taxes-for-independent-contractors, live official page, linked for readers; link checked 2026-10-31
This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.