1099-MISC box 14 and excess golden parachute payments.

What box 14 is in the 12/2026 instructions

Box 14 of Form 1099-MISC is “Overtime Compensation”: the total amount of qualified overtime compensation included in box 3. Qualified overtime compensation is compensation paid to an individual as required under section 7 of the Fair Labor Standards Act that is more than the regular rate at which the individual is paid. The instructions give an example: only the “half” portion of time-and-a-half compensation is reported in box 14.

Where excess golden parachute payments go

Form 1099-NEC box 3, “Excess Golden Parachute Payments”: enter any excess golden parachute payments. An excess parachute payment is the amount over the base amount, which the instructions define as the average annual compensation for services includible in the individual’s gross income over the most recent 5 tax years. The instructions send you to Q/A-38 through Q/A-44 of Regulations section 1.280G-1 for how to compute the excess.

What a parachute payment is

All of these must hold: the payment is in the nature of compensation; it is to, or for the benefit of, a disqualified individual (someone who in the 12 months before the change was an employee or independent contractor and a shareholder, officer or highly compensated individual of the corporation); it is contingent on a change in ownership or effective control of the corporation or of a substantial portion of its assets; and, together with other such payments to the same individual, it has an aggregate present value of at least three times the individual’s base amount.

Do not double count in box 1a

For an independent contractor, the NEC instructions say to enter in box 1a the total compensation, including any golden parachute payment. Box 3 is the excess portion, not an additional amount to add to box 1a. For employees, the instructions point to Pub. 15-A.

Worked example of the overtime box

A nonemployee is paid $30.00 an hour regular rate and 10 overtime hours at time-and-a-half. The premium over the regular rate is the half: 10 × $30.00 × 0.5 = $150.00 for box 14, while the full $450.00 overtime pay is part of box 3. Use the finder above for the other items people look for on these boxes.

Related decoders

More 1099 box pages: 1099-MISC box 2, royalties, 1099-MISC box 12, section 409A deferrals, 1099-MISC box 15, nonqualified deferred compensation, 1099-NEC box 2, direct sales of $5,000 or more, 1099-MISC box 1, rents. For the 1099-R box 7 codes see the 1099-R distribution codes lookup.

Sources

• Instructions for Forms 1099-MISC and 1099-NEC (12/2026): the box-by-box section for this form. Read November 2, 2026. The IRS page was last reviewed July 1, 2026 and labels the instructions 12/2026.

Edition read: Instructions for Forms 1099-MISC and 1099-NEC (12/2026). The instructions say the $2,000 minimum threshold applies for tax years beginning after 2025 and may be adjusted for inflation beginning in calendar year 2027; check which year your own form covers. This page summarizes the instructions and does not replace them.