What is 1099-NEC?
The IRS form businesses use to report what they paid a freelancer or contractor. From 2026, it's generally required at $2,000 or more.
Form 1099-NEC, “Nonemployee Compensation”, reports money a business paid to a non-employee, like a freelancer or independent contractor. The payer sends one copy to the person they paid and one to the IRS, generally by January 31.
The threshold
For payments made in 2026 and later, the reporting threshold is $2,000 in a year, up from $600. Payments below it generally don’t need a 1099-NEC, though they still count as income for the person paid.
Both directions
- Clients may send you one if they paid you $2,000 or more. Check the amount against your own records.
- You may need to send one to contractors you paid $2,000 or more. Collect a W-9 from them first, so you have their details.
In Kibble
Kibble’s Taxes screen tracks 1099s both ways: clients who should send you one, and people you should send one to, based on the Contract labor line. From November to January it reminds you who’s who. See 1099s and the year-end ZIP and Schedule C.
This is a plain-words definition, not tax advice.
Questions people ask
Do I report income that didn't come with a 1099-NEC?
Yes. All business income counts, whether or not a client sent a form.
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