Overview
Form 1099-NEC reports nonemployee compensation of more than $600 in a calendar year via check, bank or money transfer, cash app, etc. If you paid a contractor via credit card, you do not need to file a 1099.
When is Form 1099-NEC due?
The IRS deadline to file 1099-NECs is January 31. The IRS still accepts 1099s after this deadline; we highly encourage you to file your 1099s. If you do not file in time an information return penalty may apply, see Information Return Penalties. The sooner you file, the less you’ll pay in late-filing penalty fees.
How to complete Form 1099-NEC
- Box 1: Nonemployee compensation: Enter the total amount paid to the contractor during the year
- Payer’s TIN: Enter your business taxpayer identification number (TIN).
- Payer’s Information: Enter your business’s name and address in the top left section of the form.
- Recipient’s TIN: Enter the independent contractor’s TIN, from their W-9.
- Recipient’s name: Enter the independent contractor’s name, from their W-9.
- Street address: Enter the independent contractor’s address, from their W-9.
- Box 4: Federal income tax withheld: Record any federal and state income tax withholdings, if applicable.
How to file Form 1099-NEC
There are several options available for filing Form 1099-NEC.
- If you use a payroll provider to issue payments to your nonemployee/contractors you may be able to file directly through that platform.
- IRS E-fling option, Information Returns Intake System (IRIS), which also lets you file corrections for Forms 1099. To do so, you need an IRIS Transmitter Control Code (TCC).
- You may also file using an online filer; we suggest Track1099 - https://www.track1099.com/ because it is fast, affordable, and easily accessible.
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While you may mail a corrected 1099 form to the IRS, we advise against this as you will not be able to track progress, which could result in further delays.
Note: You cannot use the mail option if you are submitting more than ten forms.