Understand which payments are excluded from a 1099-NEC and 1099-MISC
by Intuit•10• Updated 1 week ago
Learn which payments should be excluded from the 1099-MISC and 1099-NEC form.
The IRS requires that certain contractor payments should not be included on the 1099-MISC and 1099-NEC form and are instead reported on the 1099-K form.
Which payments are excluded from the 1099-MISC and 1099-NEC form?
Payments to 1099 vendors made via credit card, debit card, or third-party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations. This is because the financial institution reports these payments, so you don't have to.
For more information about the payments that you shouldn't report, review the IRS instructions for Form 1099-K.
How'll my contractors get a 1099-K?
Small businesses don't file form 1099-K. It is required for third-party payment processing companies, banks, credit card processors, etc. to file.
Note: If you need a 1099-K from Intuit, see Intuit 1099-K Form.
Where can I find the payment information?
Choose your product to determine what payments are excluded.
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