Asked by J

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.

All Answers 1

Answered by GPT-5 mini AI
Form 1099-NEC, Nonemployee Compensation.

Reason: Payments of $600 or more to independent contractors for services are reported on Form 1099-NEC. You must furnish the recipient copy by January 31, 2025 (and file with the IRS by the same date if filing electronically). Note exceptions (generally no 1099-NEC needed for payments to corporations in most cases, payments for goods, or reimbursements).