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Deductions & credits
Are you and individual, or do you have your own Sole Proprietorship? I am assuming it is a multi-member LLC, taxed as a corporation or partnership. 1099-NEC
What is nonemployee compensation?
The IRS explains that, in general, you must report payments you make if they meet the following four conditions:
- The payment is made to someone who is not your employee
- The payment is made for services in the course of your trade or business
- The payment is made to an individual, partnership, estate, or corporation
- The payment total is at least $600 for the year
Additionally, businesses will need to file Form 1099-NEC
- when they pay an individual at least $10 in royalties, or
- if the business has withheld any federal income tax under the backup withholding rules regardless of the amount of payments for the year to the nonemployee.
Nonemployee compensation can include:
- Fees
- Benefits
- Commissions
- Prizes and awards for services performed by a nonemployee
- Other forms of compensation for services performed for your trade or business by an individual who is not your employee
March 3, 2021
12:42 PM