1099–NEC

Nonemployee compensation

Specify the minimum amount that you report for 1099-NEC Box 1 (Nonemployee Compensation). The system does not report a 1099 if the payee's amount for this box is under the minimum, unless an amount is reported on 1099-NEC Box 4 (Federal income tax withheld). The Instructions for Forms 1099, 1098, 5498, and W-2G specify the minimum amount that the IRS requires.

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, report any income from your sale of these products on Schedule C (Form 1040).