1099 Filing Guide for Contractors
Order the right 1099 forms, choose the right filing method, and get everything done on time.
Learn about 1099-NEC requirements for 2022 and your options for filing with the IRS or SSA, printing recipient forms and how to make sure everything is correct and compliant!
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 now has a year-round, dateless format.
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 250+ recipients for a single payer) or mailed by Jan 31, 2023 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.
Tutorial & Instructions
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1099 Form Due Dates for 2022.
1099NEC forms must be mailed to recipients and e-filed or mailed to the IRS on or before January 31, 2022.
For other 1099s, file by February 28, 2023, if you file on paper, or by March 31, 2023, if you file electronically.
The due dates for furnishing payee statements remain the same.
Possible New E-Filing Requirements
The IRS is considering changing the e-filing threshold to 100+ total 1099 & W2 forms per payer. They will make this decision by November. Stay tuned to Discount Tax Forms for details...
DiscountEfile.com helps you get it all done, easily!
NEW Dateless 1099 Forms
Many 1099 Forms Now Require You to Fill in the Year
The new dateless format requires you to fill in the year on each form. A software update is required. The new dateless 1099 forms are:
These forms have minor formatting changes to accommodate the new format.
1099-NEC Form Changes
1099-NEC are used when business taxpayers to report payments of nonemployee compensation.
You must must complete this form to report any payment of $600 or more to a payee such as a contractor, freelancer, attorney and others.
For the 2022 Tax Year, 1099-NEC forms are now dateless.
You must now fill in the year on each 1099NEC form for 2022. If you use software to print forms, you need to update your system to accommodate this important change.
Other 1099-NEC Form Changes for 2022
There were minor changes to the 1099NEC form for 2022, mainly to accommodate the dateless format change. There were minor border shifts, a new box for the year.
There were also verbiage changes to the instructions, including text additions and deletions, as well as removing language about a specific year.
Generally, this form is due by January 31st - to be mailed to the recipient and mailed or e-filed with the IRS.
There is no automatic extension for this form but may be available under certain hardships.
Nonemployee compensation may be subject to backup withholding if a payee has not provided a taxpayer identification number to the payer or the IRS notifies the payer that the TIN provided was incorrect.
More information about this form can be found here: Form 1099-NEC, Nonemployee Compensation
1099-MISC Form Changes
2022 Changes to 1099-MISC Forms
There is a NEW, dateless format for 1099MISC forms in 2022. You must fill in the year on each form. A software update is required.
In addition, some minor changes have occurred on the forms.
- Border shifts to accommodate dateless format
- New box with area to fil in the year
- Moved 2nd TIN box to be under FACTA filing requirement and adjusted the box sizes, etc. accordingly
- Minor verbiage changes to instructions, removing year references
1099-K New Requirements
For tax year 2022, individuals, partnerships, LLCs, and corporations that earn $600+ through various online venues will start receiving Form 1099-K, Payment Card and Third-Party Network Transactions, on which that income will be reported to themselves and the IRS.
This change will substantially increase the number of Forms 1099-K required to be filed with the IRS and furnished to recipients in early 2023.
As the result of a provision in the American Rescue Plan Act of 2021, if a TPSO—or its electronic payment facilitator, or EPF—makes payments totaling more than $600 in a calendar year to a payee, it will be required to report those payments on a Form 1099-K. Importantly, many Web 2.0 e-commerce websites and gig-economy services are TPSOs for Form 1099-K reporting purposes.
1099 Rules that can make or break you
Deadlines for 2022 1099 & W-2 Filing
January 31, 2023
All 1099 Recipient Copies B / C / 2 mailed to recipient
W-2 Employee Copies B / C / 2 mailed to employees
1099-NEC Copy A forms to IRS (via mail or e-file, which is required for 250+ forms)
W2 Copy A to IRS (mailed or e-filed)
February 28, 2023 - Paper 1099 Copy A forms to IRS
1099 Form Copy A, along with 1096 Transmittals, mailed to the IRS for all 1099 forms except 1099-NEC with non-employee compensation, which are due January 31.
March 31, 2023 - E-file 1099 forms with IRS
1099 Forms E-filed to the IRS, except 1099-NEC with non-employee compensation, which are due January 31.
Easy 1099 & W-2 Starts with Your Software System
Your accounting software is the first step to filing 1099 & W-2 Forms the easiest way.
You have 3 main options.
Your Accounting Software
If your accounting software does NOT print the forms, specialized 1099 & W-2 software is ready to help!
Import wage data, or manually enter it into the system. Then, print the 1099 or W-2 forms you need. E-filing is also typically available.
Be sure that forms are compatible with the layouts programmed into the software.
The easiest way to file less than 50 forms is online! Discount E-file takes care of printing and mailing recipient copies for you, plus e-files with government agencies.
You simply import or type in data and we do the rest!
E-Filing is required for 100+ forms, but you can e-file as few as one!
1099 - Choosing the Right Forms
Select the right type of 1099, in the right format, for easy printing and mailing.
2] Number of 1099 Parts
The number of parts you need is based on which government agencies you need to file with - Federal, State, and/or City.
Typical 1099 Parts:
- Copy A: Federal Government (Red Copy)
- Copy B: Recipient Copy
- Copy C/2: Payer or State Copy
AK, CA, FL, GA, IL, IN, IA, KY, LA, MD, MI, MO, NV, NH, NM, NY, OR, SD, TN, TX, VT, WA, WY
AL, AR, AZ, CA, CO, CT, DE, DC, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MO, MS, MT, NE, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, UT, VT, VA, WV, WI
AL, AZ, CO, CT, DE, HI, ID, ME, MA, MN, MS, MT, NE, NC, ND, OH, OK, PA, SC, UT, WI
3] Type of Paper
Preprinted 1099 Forms are for software that only prints the data. Boxes are preprinted on the form and recipient instructions are preprinted on the back.
Blank 1099 form paper is for software that prints form boxes and data. Recipient instructions can be printed on the back. If they aren't, you must supply them per IRS regulations.
Continuous, pin-fed 1099 forms can be used with typewriters or dot-matrix printers.
Ideal for printing a large volume of 1099 forms with pressure seal systems.
Don't Forget 1099 Envelopes
Use compatible envelopes to ensure the recipient and return addresses show through the windows correctly.
1096 Transmittal Forms
When mailing 1099 Copy A forms to the IRS, include one 1096 form for each payer. This form summarizes all of the 1099-MISC submitted by the payer.
1099-NEC ‘Copies’, or parts, report non-employee compensation to recipients and government agencies and help ensure accuracy of income tax filing. 1099-NEC Forms are filled out by the payer and provided to the recipient and government agency.
It’s easy for businesses to efile 1099 & W2 forms with the right online system! You don’t need special software or technical knowledge, and certainly don’t need to spend hundreds of dollars.
Filing 1099 & W2 forms online simplifies the entire process for businesses and bookkeepers, eliminating the time-consuming process of printing and mailing forms.
Buy 1099 & W2 forms from a fellow small business for discount prices and expert service – The Tax Form Gals at Discount Tax Forms!
If you need to correct a 1099 form because the original has errors, you will need to re-file the 1099 form and check the box at the top. But there is an easier way…