What does a 1099-NEC form mean? A 1099-NEC form reports non-employee compensation, which you may have previously gotten on a 1099-MISC. So, if you worked as a freelancer or contractor last year you probably got a 1099-NEC form reporting how much money an employer paid you.
Here’s all about the meaning of 1099-NEC forms from TurboTax:
1099-NEC Form Meaning?
The thing with being self-employed is that taxes aren’t withheld from your paycheck, so now that you’re filing your tax return you’ll have to pay the social security and Medicare taxes on that income.
1099-NEC? You Probably Owe the IRS Money
Doh! Well, as they say, I guess the only certainties in life are death and taxes!
If you got a 1099-NEC form it means that the government is cordially inviting you to pay the money you owe them.
It’s kind of like getting a letter from Publisher’s Clearing House except the opposite because instead of winning money you owe it. (But not millions, hopefully!)
Anyway, if you are self-employed, there’s a good article here about how much TurboTax Self-Employed Edition costs and how to get a discount.