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The Form 1099-NEC, Nonemployee Compensation skill extracts data from Forms 1099-NEC, which are annual reports about payments carried out by a taxpayer to non-employees. This report is provided to both the US Internal Revenue Service (IRS) and each recipient of such payments. The taxpayer has to compile a separate report for each such non-employee receiving payments from the taxpayer of at least 600 USD during the reporting year. The Form 1099-NEC, Nonemployee Compensation skill is a preview skill. It has been trained on a limited set of documents and is designed to help you quickly get started with processing Forms 1099-NEC. For production use, you may need to uptrain the skill with your own document samples. This skill recognizes handwritten text. The option is enabled by default. If you do not import handwritten forms, disable the Handwritten option in the skill settings.

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Countries and Languages

CountriesLanguages
USAEnglish

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Extracted Fields

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Basic Form Information

FieldDescription
VoidSpecifies that the processed form should be annulled.
CorrectedSpecifies that the processed form is being submitted to correct data provided earlier.
YearThe reporting fiscal year.

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Payer Details

FieldDescription
NameThe name, address, and phone number of the payer.
StreetThe name, address, and phone number of the payer.
CityThe name, address, and phone number of the payer.
StateThe name, address, and phone number of the payer.
ZIP CodeThe name, address, and phone number of the payer.
CountryThe name, address, and phone number of the payer.
PhoneThe name, address, and phone number of the payer.

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Tax Identification Numbers

FieldDescription
Payer’s TINThe tax identification number assigned to the taxpayer.
Recipient’s TINThe tax identification number assigned to the recipient of the taxpayer’s payments.

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Recipient Details

FieldDescription
NameThe name and address of the payment recipient.
StreetThe name and address of the payment recipient.
CityThe name and address of the payment recipient.
StateThe name and address of the payment recipient.
ZIP CodeThe name and address of the payment recipient.
CountryThe name and address of the payment recipient.

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Account and Payment Information

FieldDescription
Account NumberThe unique number used by the taxpayer to identify the payment recipient.
Nonemployee CompensationThe total amount received by the payment recipient from the taxpayer.
Payer Made Direct Sales Totalling $5000 or MoreSpecifies that the taxpayer made direct sales totalling at least 5000 USD.
Federal Income Tax WithheldThe total amount withheld as federal income tax.

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State Tax Information

FieldDescription
State Tax Withheld 1State-specific payment information.
State Tax Withheld 2State-specific payment information.
State/Payer’s State Number 1State-specific payment information.
State/Payer’s State Number 2State-specific payment information.
State Income 1State-specific payment information.
State Income 2State-specific payment information.

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Key Fields

  • Year
  • Payer Details/Name
  • Payer’s TIN
  • Recipient’s TIN
  • Recipient Details/Name
  • Account Number
  • Nonemployee Compensation

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Validation Rules

RuleDescription
Complete Form YearChecks the value in the Year field. It removes any white spaces and converts a 2-digit year into a 4-digit format. If the last two digits are numeric and start with 9, it converts the value to the 1900’s (for example, 99 converts to 1999). Otherwise, it assumes the date is from the 2000’s (for example, 24 converts to 2024).