U.S. · Tax forms
1099-NEC box 4, backup withholding at 24 percent.
When a payer withholds, the rate, and why a form is due at any amount.
Box 4 of Form 1099-NEC shows backup withholding: federal income tax a payer held back, for example because the person paid has not furnished a taxpayer identification number. The rate is 24 percent according to the IRS General Instructions (2025), and a payer who withholds must file a Form 1099-NEC for that person regardless of the amount paid.
Estimate the withholding
Result
What box 4 contains
The box 4 instruction says only: enter backup withholding. For example, persons who have not furnished their TINs to you are subject to withholding on payments required to be reported in box 1a. For more information on backup withholding, including the rate, the instructions send you to part N in Pub. 1099.
The rate
The 1099-NEC instructions do not state the percentage. The General Instructions for Certain Information Returns (2025), part N, say that nonemployee compensation and certain other payments may be subject to backup withholding at a 24% rate. It applies for the period described there, generally until the TIN is furnished in the manner required.
A form is due at any amount
The 1099-NEC instructions say you must file Form 1099-NEC for each person from whom you have withheld any federal income tax under the backup withholding rules, regardless of the amount of the payment. So the $2,000 line for box 1a does not protect a payer who withheld.
How to avoid it as a payee
Backup withholding is triggered by the TIN. The instructions say you may use Form W-9 to request the payee’s TIN. Giving the payer a correct W-9 before the first payment is the usual way a contractor avoids the withholding in the first place.
Worked example
A company pays a contractor $10,000 for work done and the contractor never returned a Form W-9. The company withholds 24% in backup withholding: 0.24 × $10,000 = $2,400, sending $7,600 to the contractor and depositing the $2,400 with the IRS. The Form 1099-NEC shows $10,000 in box 1a and $2,400 in box 4. The calculator above uses the 24% rate from the General Instructions and the amount you enter; confirm the exact base and period in part N.
Related decoders
More 1099 box pages: 1099-MISC box 4, federal income tax withheld, 1099-MISC box 6, medical and health care payments, 1099-MISC box 10, gross proceeds paid to an attorney, 1099-MISC box 8, substitute payments, 1099-K box 1a, gross amount of payments. 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.
- General Instructions for Certain Information Returns (2025), part N, Backup Withholding: part N on backup withholding. Read November 2, 2026. The IRS page was last reviewed April 30, 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.
Frequently asked questions
What is box 4 on a 1099-NEC?
Backup withholding: federal income tax the payer withheld from nonemployee compensation, for example because the payee did not furnish a TIN.
What is the backup withholding rate?
The General Instructions for Certain Information Returns (2025) say 24%. The 1099-NEC instructions refer to part N of Pub. 1099 for the rate.
Do I file a 1099-NEC if I withheld on a payment below $2,000?
Yes. The instructions say to file Form 1099-NEC for each person from whom you withheld any federal income tax under backup withholding, regardless of the amount of the payment.
How do I get a TIN from a contractor?
The instructions say you may use Form W-9 to request the payee’s taxpayer identification number.
Is box 4 the same as estimated tax?
No. Box 4 is tax the payer actually withheld under the backup withholding rules. The instructions do not describe estimated tax.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. The payer, a CPA or an enrolled agent can confirm what a box means for your return. Everything runs in your browser; nothing you enter is sent anywhere.