Watch out for one more condition.
If the business paying you makes a direct sale of $5,000 or more to you during the tax year for something you plan to resell, it needs to be reported on the 1099-NEC form, as well.
For instance, say you are a freelance writer with your own book store. A magazine hires you to write a regular column for a year, and during that time, you make a direct purchase of their latest stock of magazines worth $6,500 to sell them in your store. And, since you will ultimately earn income from selling the magazines, the magazine company reports that stock purchase on Form 1099-NEC.
During your review of a 1099-NEC, also make sure you check whether the business reports your federal income tax withheld by them, if any, regardless of the amount. This falls under the backup withholding rules laid out by the IRS.
The 1099-NEC you receive will look like this: