Question

I am self-employed and worked as a consultant. For a project I hired a consultant and paid him over 600. Does that mean I have to create a 1099 Misc form? How to do it?

Forum|Forum|5 years ago
December 27, 2020
1 reply
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This project was not paid by a U.S. employer but by the United Nations and I live permanently outside of the U.S.

TurboTax Online

Yes -- Since you paid a consultant over $600 you have to report the payment on a 1099-NEC form. Starting in 2020 this form is used to report nonemployee compensation that used to be reported on a 1099-MISC, box 7.

Since you only have one form to prepare, you can download Form 1099-NEC from the IRS website and fill it in manually. Be sure to pay attention to the Instructions for Payer on page 8 of the document.