Under current IRS rules, which form must a contractor file to report $3,600 paid to an unincorporated independent subcontractor for services performed during the tax year?
Explanation
Nonemployee compensation is reported on Form 1099-NEC, due to both the recipient and the IRS by January 31 (b). Reporting kicks in once annual service payments reach the threshold, which is $2,000 for tax year 2026; $600 was the figure through tax year 2025, and $3,600 clears either line. (a) the 1099-MISC kept the February 28 paper deadline but lost nonemployee compensation in 2020 and now covers rents, royalties and other miscellaneous payments. (c) a W-2 is for employees only, though it shares the January 31 date. (d) Form 1096 is the paper transmittal summary that accompanies paper information returns; it is not the return itself and is not due April 15.
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