In the United States, independent contractors and the self-employed receive a Form 1099-MISC from each business client that pays at least $600 during the tax year. All US Brand Affiliates who earn at least $600 of non-employee compensation in a given tax year will be sent a 1099 by the end of the following January, Starting with tax year 2020, the IRS has implemented a new form, the 1099-NEC. US Brand Affiliates will now receive the 1099-NEC, 1099-MISC, or both of these forms. They will be mailed to the permanent address on file and uploaded to Volumes and Genealogy.
What counts as income on the 1099?
- Commissions - All commissions earned between January 1st and December 31st of the preceding tax year will show in Box 1 of the form 1099-NEC. If this amount totals $600 dollars or more, the 1099 will be automatically generated and sent by the company. If commissions earned in the preceding year is less than $600, you may contact Brand Affiliate Support about receiving a 1099.
- Prizes and Awards - All prizes and awards, including enJoy Rewards point redemptions, prizes, awards, and travel (Success Trips, Weekend Getaways, etc.) will show in Box 3 (Other Income) of the 1099-MISC. If Prizes and Awards total $600 dollars or more, the 1099 will be automatically generated and sent by the company.
- Back-Up Withholding (BTW) in Box 4 of both forms and Direct Sales of $5,000 or more in Box 7 of form 1099-MISC.
Any questions regarding the breakdown of any one of these boxes can be directed to Brand Affiliate Support.
Note: Nu Skin is not a tax services provider and as such does not offer tax advice. Any questions regarding filing taxes should be fielded by a registered tax professional.