A 1099-NEC is the form a company sends to show what it paid you for the year. “NEC” means “nonemployee compensation.” In plain words: money paid to someone who isn’t on payroll.
When it shows up
Companies have to send it by January 31. For 2026 pay, that’s February 1, 2027, because January 31 falls on a Sunday. It may come in the mail, by email, or through the company’s pay website.
You get one from each company that paid you $2,000 or more in 2026. (Before 2026 it was $600.)
What to look at
- Box 1: what the company says it paid you. This is the number that matters.
- Box 4: federal tax held back. For most techs this is zero.
- Your name and Social Security number: make sure they’re right.
Check it against your own records
Add up the checks you got from that company. Does it match Box 1?
- It matches: good. Keep the form.
- Box 1 is higher: often that’s because the company counted your pay before chargebacks, truck rental or other deductions. That’s normal. Count those deductions as work costs so you don’t pay tax on money you never got.
- It’s just wrong: ask the company to send a corrected form. The IRS gets a copy, so you want it right.
Didn’t get one?
You still owe tax on that money. The form is the company’s job. Reporting the income is yours. Use your own record of the checks.
What you do with it
- Don’t mail it to the IRS. The IRS already has a copy.
- Give it to whoever does your return, or type Box 1 into your tax software.
- Keep it for at least 3 years.
The money gets reported as business income. Your work costs, like tools, miles and phone, come off it. What’s left is your profit, and that’s what you’re taxed on.
Paid through an app or card too?
If some of your pay came through a payment app or card processor, you might also get a 1099-K. Be careful not to count the same money twice if it shows up on both forms.
Don’t forget the January payment
Your last payment for 2026 is due January 15, 2027, two weeks before the forms even arrive. Don’t wait for the 1099 to pay it. The due dates.
If you log every check in Tech Tax Helper, you can check each 1099 in a minute: your totals for each company are already added up.
This is general information about U.S. federal taxes, not advice for your situation. If something here doesn't match your paperwork, ask a tax preparer.