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Payers use Form 1099-NEC, Nonemployee Compensation to:
- Report payments made of at least $600 in the course of a trade or business to a person who's not an employee for services, payments to an attorney, or any amount of federal income tax withheld under the backup withholding rules (Form 1099-NEC).
- Report payments of $10 or more made in the course of a trade or business in gross royalties or broker payments in lieu of dividends or tax-exempt interest or $600 or more made in the course of a trade or business in rents or for other specified purposes (Form 1099-MISC).
- Report sales totaling $5,000 or more of consumer products to a person on a buy-sell, a deposit-commission, or other commission basis for resale (Form 1099-NEC or Form 1099-MISC).
- Report payment information to the IRS and the person or business that received the payment.
If you're a business owner, you may need to create W-2 and 1099 forms (including 1099-NEC and 1099-MISC) for your employees or contractors. Here is the link that explains how to do so in TurboTax: https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-forms/create-w-2-1099-forms-employee...
