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Level 1
posted Jan 28, 2025 8:39:29 AM

What payments to include on 1099-NEC

I paid a sub contractor $8000 over the year.  $7500 was paid with a credit card and $500 was paid with cash.  Since the PSE should send a 1099-K for the $7500, does that mean I only need to send a 1099-NEC for the $500 that was paid in cash?  Thank you!

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1 Replies
Expert Alumni
Jan 28, 2025 11:59:38 AM

You will include the entire $8,000 you paid them on the 1099-NEC.  Your reporting requirements are not changed by the PSE reporting requirements. This basically is to show where your money went as well as it is to report that they were paid.  Depending on how they report their income, they may or may not need to make some adjustments in how they report the income.