Why is there an amount in Box 7 (Nonemployee Comp) on my 1099-MISC?
If your 1099-MISC has an amount in Box 7 (Nonemployee compensation), the payer did not consider you an employee. Instead, they are treating you as a self-employed worker, also called an independent contractor.
Common examples of nonemployee compensation
- Payments to an independent contractor, consultant, freelancer, or other independent worker
- Commissions paid to a nonemployee salesperson
- Executor or trustee fees
- Director fees
- Exchanges of services between individuals in the course of their trade or business
- Witness or expert witness fees
If you feel the payer incorrectly report your income in Box 7, contact them directly. If an error was made, they will issue you a corrected 1099-MISC and also refile the form with the IRS.