1099-NEC Report Non-Employee Payments

Employers report the income paid to their employees through filing Form W-2. The same as this is required by law, employers also need to report payments made to non-employees. There are two main ways to do this and the most straightforward option is through filing Form 1099-NEC, Non-Employee Compensation. This tax form is pretty much like any other 1099 and employers should file this before January 31 to avoid potential monetary penalties.

In this article, we’ll cover everything you need to know about Form 1099-NEC, provide you with a fillable copy of the form, and answer commonly asked questions.

Form 1099-NEC for 2024 taxes

The Internal Revenue Service renews the information returns every year so that payers know what form to use for that year. When filing Form 1099-NEC or any other 1099, make sure to revert back to the revision date shown on the bottom left. Fill out the form that’s most recent, which is Rev. 1-2024 for the 2023 – 2024 taxes.

If you’re filing Form 1099-NEC late, use the form revisioned on 1-2023, not the one below.

Form 1099-NEC online fillable PDF

Form 1099-NEC is fillable online through our PDF editor. You can enter money amounts, personal information, and sign the document if applicable. Form 1099-NEC doesn’t require any signature. As long as you report the money amounts and personal information of both you and the payee correctly, you’re good to go. Start filing Form 1099-NEC below.

Dates for Form 1099-NEC

All payers must file Form 1099-NEC with the payee before January 31. This is mandatory and it should be taken into account that filing it after January 31 will result in paying late-filing penalties. For the Internal Revenue Service, the deadline is the same.

Note that you don’t file Form 1099-NEC or similar information returns with the IRS directly. Instead, use Form 1096 to report each 1099 you filed during the tax year. Learn more about Form 1096 here.

FAQs on Form 1099-NEC

Do I need to file Form 1099-NEC or 1099-MISC?

For compensation paid to an independent contractor or a freelancer, you can use Form 1099-NEC. Although you can do the same with 1099-MISC, the 1099-NEC is a much simpler tax form that only reports this. Use Form 1099-MISC to report other income paid to a payee such as rents, attorney payments, medical and healthcare payments, and more. Read more about the uses of Form 1099-MISC.

I received a 1099-NEC, what do I do with it?

Use the 1099-NEC you received to report income on your federal income tax return. You can also use the same form to report income on your state income tax return. This tax form is an information return, meaning that it reports the income you received. In this case, it is income earned as an independent contractor or freelancer.

Can I handwrite on Form 1099-NEC instead?

Yes, you can complete Form 1099-NEC on paper using a pen. However, it will take you significantly longer to complete each copy of the form. Instead, fill out a copy of Form 1099-NEC through the TaxUni PDF editor online and copy the same information for all the forms. This will save you a ton of time so you can get back on other tax obligations.

How to file Form 1099-NEC electronically?

There are several ways to file Form 1099-NEC electronically. Though most taxpayers think of tax preparation services where you pay, it isn’t the only. The Internal Revenue Service’s FIRE (Filing Information Returns Electronically) is available for most taxpayers. Use it to file information returns online and print out paper copies to furnish the independent contractors and freelancers to whom you’ve paid income. Additionally, you can save the documents as a PDF to send them through email.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button