Nonemployee Compensation Reporting: Who Qualifies and What You Get
Learn how to report income earned from independent work and what you need to know about your tax obligations.
This reporting process is used to document payments made to independent workers who are not regular employees.
Who it's for
This applies to consultants or independent contractors who earn more than $600 from a single client during the year.
What you get
You receive an official record of your income, which serves as proof of your earnings when you file your taxes.
What it costs you
There is no direct fee to receive this document, but it requires you to ensure your client has your correct personal and tax information.
The catch to know
Even if a client fails to send you this official document, you are still legally required to report that income on your tax filings.
How to apply
- Confirm your total earnings from a client for the year.
- Provide your correct tax identification information to your client.
- Check your mail or digital inbox for your document.
- Use the information to complete your tax filings.
For more details, visit the official portal: https://www.irs.gov/forms-pubs/about-form-1099-nec