1099NEC TAX FORMS
1099NEC tax forms for reporting non-employee compensation.
- Small minimum quantities of 1099-NEC forms
- Compatible with QuickBooks® and other software
1099NEC Forms & Efiling made easy with the right options from Discount Tax Forms. Shop easy, ship fast!
WHAT IS 1099NEC?
Income reporting for non-employees.
It is used to report $600+ in non-employee compensation previously reported on 1099-MISC forms. This was a new form in 2020, and it has a new 3up format for 2021.
WHEN IS IT DUE?
Forms must be mailed to recipients by January 31.
They must be also be e-filed with the IRS by January 31 (if you have 10+ recipients for a single payer) or mailed by Jan 31, 2022 with a 1096 transmittal summary form.
WHO SHOULD USE IT?
Businesses required to report payments of $600+ to non-employees.
Any business who pays contractors, freelancers, attorneys or any person considered a non-employee must report payments of $600+ during the tax year.
Online Filing Eliminates the Forms!
Instructions for Form 1099-NEC
To use the 1099-NEC properly, you need to understand what is considered non-employee compensation.
Previously reported on Box 7 of the 1099-MISC, the new 1099-NEC will report any payments of $600 or more to nonemployee service providers, such as independent contractors, freelancers, vendors, consultants and other self-employed individuals (commonly referred to as 1099 workers).
According to the IRS, a combination of these four conditions makes a payment reportable on the 1099NEC:
- It is made to someone who is not your employee.
- It is made for services in the course of your trade or business.
- It was made to an individual, partnership, estate, or, in some cases, a corporation.
- Payments were $600 or more for the calendar year.
Examples of when to use 1099NEC forms:
- Professional service fees to attorneys, accountants or architects
- Fees paid by one professional to another
- Payments for services, including those for parts or materials used to perform the services, even if they were incidental
- Commissions paid to nonemployee salespeople, not repaid during the year
- Payments for merchandise, phone, freight, storage or similar items.
- Payments to a tax-exempt organization, including tax-exempt trusts or governments.
Dos and Don’ts for 1099-NEC
✓ Do verify that the recipient’s taxpayer ID is correct. You must have Form W-9 from each recipient with the current taxpayer ID before you complete Form 1099-NEC.
✘ Don’t use Form 1099-NEC to report personal payments.
✘ Don’t use Form 1099-NEC to report employee wages; use Form W-2 instead.
✘ Don’t report gross proceeds to an attorney (not fees) on Form 1099-NEC; use Form 1099-MISC instead.
✘ Don’t use Form 1099-NEC to report payments of rent to real estate agents or property managers; use Form 1099-MISC instead.
Please note: You must also file Form 1099-NEC (report in box 4) for anyone from whom you withheld federal income tax under the backup withholding rules, regardless of the amount.
Filing Form 1099NEC
- Distribute to recipients by January 31.
- File with the IRS by Jan. 31 through paper or electronic filing.
- As part of the Taxpayer First Act, many businesses will no longer be able to submit paper forms. For tax year 2021, the electronic filing threshold is 10 forms. Which means any business with 10 forms or more are required to e-file. For an easy efiling solution, check out DiscountEfile.com!
1099 Filing Guides