1099-NEC

Nonemployee compensation

Specify the minimum amount that you can report for 1099-NEC Box 1, Nonemployee compensation. A 1099 will not be reported if the payee's amount for this box is less than the minimum, unless a withholding amount is reported on 1099-NEC Box 4, Federal income tax withheld.

The minimum amount that the IRS requires to be reported for 1099-NEC Box 1, is specified in the Instructions for Forms 1099, 1098, 5498, and W-2G.

Direct sales

Specify the minimum amount that you report for 1099-NEC Box 2 (Direct sales indicator). If checked, consumer products totaling $5,000 or more were sold to you for resale, on a buy-sell, a deposit-commission, or other basis. Generally, you must report any income from your sale of these products on Schedule C (Form 1040).