What is Form 1099 NEC?

Form 1099-NEC is an IRS tax form used to report nonemployee compensation. Payers should use this form if they have paid $600 or more to a vendor, independent contractor, or freelance worker during the tax year. In addition to filing Form 1099-NEC with the IRS, payers must also furnish a copy to their recipients.

IRS Form 1099 NEC Line by Line Instructions

Form 1099-NEC contains 7 boxes. Each box requires certain information specific to the reporting. Following are the breakdown of each box of IRS Form 1099-NEC.

  1. Box 1: Nonemployee compensation
  2. Box 2: Payer made direct sales totaling $5,000 or more of consumer products to recipient for resale
  3. Box 3: Reserved for Future Use
  4. Box 4: Federal Income Tax Withheld
  5. Box 5: State tax withheld
  6. Box 6: Enter your state identification number or the abbreviated name of your state
  7. Box 7: Enter the amount of the state income in this line.
Know more about the Form 1099-NEC changes for the 2021 tax year in detail

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Visit https://www.taxbandits.com/1099-forms/form-1099-nec-changes-for-2021/ to learn more about Form 1099 NEC
changes Line by Line Instructions

What is the Deadline for the 1099 NEC Form?

Recipient copy

Recipient copy

January 31, 2023

Automate 1099 filing


January 31, 2023

Paper filing Form 1099-NEC

Paper filing

January 31, 2023

If the 1099-NEC deadline falls on any Federal holidays or weekends, the next business day will be the due date.

Note: IRS Recommends to file Form 1099 NEC electronically for quick processing and instant approval.

Ready to file Form 1099-NEC? Get started with TaxBandits and E-file your Form 1099-NEC in a few minutes.

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What are the filing requirements for Form 1099 NEC?

File Form 1099 NEC

E-filing is by far the best option when it comes time to file Forms 1099-NEC with the IRS. Filing electronically is more accurate, efficient, and cost-effective.

  1. Payer Details: Name, TIN, and Address

  2. Recipient Details: Name, TIN, and Address

  3. Nonemployee compensation

  4. Federal Details: Miscellaneous Incomes and Federal Tax Withheld

  5. State Filing Details: State Income, Payer State Number, and State Tax Withheld

Want to know how to complete Form 1099-NEC? Check out this step by step 1099-NEC instruction

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How to File 1099 NEC Form Electronically

With TaxBandits, you can expect an e-filing process that is simple, secure, and designed for accuracy. To begin filing just follow these simple steps Once you review and transmit your form, our team will continue to update you on it’s status with the IRS.

Step 1

Sign up and Select Form 1099-NEC from the dashboard.

Step 2

Enter the required Form 1099-NEC details.

Step 3

Review Form information

Step 4

Transmit Form 1099 NEC to the IRS/State.

Don't wait till the 1099 NEC due date Get started with TaxBandits today and E-file 1099 NEC in minutes.

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What are the penalties for 1099 NEC Forms?

It is crucial that you file 1099-NEC with the IRS on or before the deadline. If you fail to do so, you are subject to late filing penalties, depending on how late you file it. These penalties are given below:

  • Filing 1099-NEC after the deadline, Not more than 30 days late $50/per return.

  • Filing between 31 days late and August 1 - $120/per return.

  • Filing after August 1 or not filing at all - $280/per return.

  • Not filing the return intentionally - $550/per return.

Learn More about 1099 NEC Penalties

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States that require 1099-NEC filing for 2022

If your state has mandated the filing of Form 1099, you must file it on or before the state filing deadline. Failing to file 1099-NEC with the state may result in penalties.

For the states, Alaska, Florida, Illinois, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming are not required to file form 1099.

Check out your Form 1099 NEC state filing requirements.

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Contact Us

For any questions about e-filing your Form 1099, you can contact our support team by phone or email. Our team is here to assist you!