Form 1099-NEC is a tax form used in the United States to report nonemployee compensation paid to individuals or businesses. Nonemployee compensation refers to payment for services performed by individuals or businesses that are not considered employees for tax purposes. Examples of nonemployee compensation may include payment to independent contractors, freelance workers, or other self-employed individuals.

Form 1099-NEC is used to report the total amount of nonemployee compensation paid during the tax year. It must be provided to the recipient of the payment and to the Internal Revenue Service (IRS) by January 31 of the following year.

Form 1099-NEC is similar to Form 1099-MISC, which is used to report a wide range of miscellaneous income, including nonemployee compensation. However, Form 1099-NEC was introduced in 2020 specifically to report nonemployee compensation, in order to provide a clearer and more accurate picture of this type of income. Form 1099-MISC is still used to report other types of miscellaneous income.