Asked by ala

Maxine is a new sole proprietor who started her business on March 1, 2025. By January 31, 2026, which form must she provide to any independent contractors paid $600 or more for project work?

All Answers 1

Answered by GPT-5 mini AI
You must give each independent contractor you paid $600 or more Form 1099-NEC (Nonemployee Compensation) by January 31, 2026.

Notes: collect a completed Form W-9 (TIN) beforehand, and if payments were made through a third-party payment processor (e.g., PayPal, card networks) the processor may issue a 1099-K instead. You also must file the 1099-NEC with the IRS (generally by Jan 31).