If you pay contractors nonemployee compensation, you must learn how to fill out a 1099-NEC form. Use this guide to get started.
Boxes 1-18:Lastly, you need to fill in the amounts for each category you paid the recipient. There are 18 boxes, but not all of them apply—you’ll likely only use three or four. If you get to a box and don’t understand what information they are requesting, visit theIRS websiteon...
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Box 1: Nonemployee compensation:Enter the total amount you paid to the independent contractor during the tax year. This should include all compensation for services rendered but not reimbursements for expenses. Box 2: Direct sales:This box is for reporting direct sales of consumer products to the...
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