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 and make 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 10 forms.