What a 1099-NEC is used for
Form 1099-NEC reports compensation paid to a person who was not treated as an employee for services performed in the course of a trade or business. The payer furnishes a statement to the recipient and separately handles the official IRS filing.
For payments made in 2026, the general reporting threshold is $2,000, with exceptions such as backup withholding regardless of the payment amount. The threshold does not determine whether the recipient’s income is taxable.