The short answer
| What it reports | Payments for services performed for a trade or business by people not treated as its employees. Examples: fees to subcontractors or directors and golden parachute payments. |
|---|---|
| Amounts to report | $2,000 or more for tax years beginning after 2025, up from $600, and may be inflation-adjusted from calendar year 2027. Box 2, aggregated direct sales of consumer goods for resale: $5,000 or more |
| To the recipient | January 31 |
| To the IRS, on paper | January 31 |
| To the IRS, electronically | January 31 |
If one arrives
Report it on Schedule C as business income. The form is how the payer told the IRS; it is not your bookkeeping, and income below the threshold is still fully taxable.
The form is how a payer tells the IRS what it paid. Its absence is not permission — income you received is reportable whether or not a form covers it, and a threshold decides only who must file, never what you owe.
If you have to send one
You file one for each non-corporate person you paid $2,000 or more for services. Card and platform payments are excluded — the processor reports those on 1099-K.
Electronic filing is required once you file 10 information returns, counting every type together — eight 1099-NECs and four 1099-MISCs is twelve, not eight.
This page is for educational purposes only and does not constitute tax, legal, or financial advice. It covers United States federal reporting. Consult a qualified tax professional about your situation.