Question
Naomi is a new sole proprietor. She started her business on March 1, 2024. By January 31, 2025, she needs to issue which document to any independent contractors to whom she paid $600 or more to do project work for her business?
Form 1099-K, Payment Card and Third-Party Network Transactions.
Form 1099-MISC, Miscellaneous Income.
Form 1099-NEC, Nonemployee Compensation.
Form W-2, Wage and Tax Statement.
Form 1099-K, Payment Card and Third-Party Network Transactions.
Form 1099-MISC, Miscellaneous Income.
Form 1099-NEC, Nonemployee Compensation.
Form W-2, Wage and Tax Statement.
Answers
GPT-4o mini
Naomi needs to issue **Form 1099-NEC, Nonemployee Compensation** to any independent contractors to whom she paid $600 or more for their services. Form 1099-NEC is specifically used to report payments made to nonemployees for services rendered.