How Do I Report Income from a Consulting Service on a 1099 Form?

Use a Form 1099-NEC to report the income that you paid for a consulting service. Businesses must send a form to consultants that they paid $600 or more in the last tax year. Understand the types of workers or businesses that you should classify as offering consulting services. You may hire a consultant to offer you professional or expert advice on a matter. A consultant can operate independently as an individual contractor. You may also hire a consultant who is an employee of a consulting company. Your business must file 1099 forms for either employment scenario since the worker is not your employee.

We handle reporting 1099 income programmatically with our W-2/1099 Forms Filer software. Download our free demo software today to enter your data and discover electronic filing options using our E-File software.

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