What Is Form 1099-NEC?

Form 1099-NEC reports nonemployee compensation — money paid to independent contractors, freelancers, and other self-employed individuals. Businesses must issue a 1099-NEC to any individual paid $600 or more during the year. You receive a copy, and the IRS receives one too. This income is reported on Schedule C and is subject to self-employment tax. Even if you receive less than $600 (and don't get a 1099-NEC), the income is still taxable.