Business FinancesQuestion 504 of 690
Under current IRS rules, which form must a contractor file to report $1,500 paid to an unincorporated independent subcontractor for services performed during the tax year?
a.Form 1099-MISC, due February 28
b.Form 1099-NEC, due January 31
c.Form W-2, due January 31
d.Form 1096, due April 15
Explanation
Beginning with 2020 tax year, nonemployee compensation of $600 or more is reported on Form 1099-NEC (Non-Employee Compensation), due to both the recipient and the IRS by January 31. Form 1099-MISC is now used for rents, royalties, and other miscellaneous payments.
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