1099-NEC
Business & Finance abbreviation · Tax
| Stands for | Nonemployee Compensation (IRS Form 1099-NEC) |
|---|---|
| Categories | Business & Finance |
1099-NEC stands for Nonemployee Compensation (IRS Form 1099-NEC), a tax abbreviation.
Return a business files for each independent contractor, freelancer or other non-employee it paid for services above the reporting threshold during the year. It must be furnished to the worker and filed with the IRS by January 31, with no automatic extension.
Example: Our bookkeeper is preparing 1099-NEC forms for the six designers we hired last year.
Usage notes
The form was revived for tax year 2020 after decades out of use; before that, contractor pay appeared in Box 7 of Form 1099-MISC. The long-standing $600 threshold was raised to $2,000 for payments made from 2026 by legislation passed in 2025. Payments to corporations are generally exempt, except legal fees. Pronounced "ten-ninety-nine en-ee-see."
Related abbreviations
More tax abbreviations
- 1099-DA – Digital Asset Proceeds From Broker Transactions (IRS Form 1099-DA)
- 1099-DIV – Dividends and Distributions (IRS Form 1099-DIV)
- 1099-G – Certain Government Payments (IRS Form 1099-G)
- 1099-INT – Interest Income (IRS Form 1099-INT)
- 1099-K – Payment Card and Third Party Network Transactions (IRS Form 1099-K)
- 1099-MISC – Miscellaneous Information (IRS Form 1099-MISC)
- 1099-R – Distributions From Pensions, Annuities, Retirement or Profit-Sharing…
- 1120 – U.S. Corporation Income Tax Return (IRS Form 1120)
- 1120-S – U.S. Income Tax Return for an S Corporation (IRS Form 1120-S)
- 409A – Section 409A (nonqualified deferred compensation rules)
- 4868 – Application for Automatic Extension of Time To File U.S. Individual…
- 501(c)(3) – Charitable organization (Internal Revenue Code section 501(c)(3))