DMarkM1
Expert Alumni

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You are correct. Income reported on a 1099-NEC is inherently self-employment income and subject to Self-employment taxes. 

 

According to the IRS payments for services performed are NEC.  Below is extracted from the 1099-NEC instructions

 

What is NEC? 

If the following four conditions are met, you must generally report a payment as NEC.

  • You made the payment to someone who is not your employee.

  • You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations).

  • You made the payment to an individual, partnership, estate, or, in some cases, a corporation.

  • You made payments to the payee of at least $600 during the year.

 

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