The IRS mandates e-filing when you file 10 or more 1099-NEC tax returns for the 2023 tax year. E-File Now

Benefits of Filing 1099-NEC online With TaxBandits

Manual Filing

Manual Filing

When you have just a few returns to manage, TaxBandits offers a simple manual entry option. Just enter your data, review it, and transmit your return effortlessly with just a few easy steps.

Bulk E-filing

Bulk E-filing

Tired of manual data entry? With TaxBandits, you can import data directly from Excel/CSV or your own templates, making it a breeze to file multiple returns all at once without the hassle of manual input.

API Integration

API Integration

Make tax filing a seamless part of your system. Integrate TaxBandits' API to effortlessly manage your tax filing process and supercharge your system's capabilities, making the whole experience of tax filing much smoother and more efficient.

E-file for Every State

E-file for Every State

Need to file your Form 1099-NEC with States? TaxBandits allows you to quickly and easily e-file for every state, ensuring a comprehensive solution for all your state-level tax filing needs.

Postal Mail & Online Access

Postal Mail & Online Access

TaxBandits offers the flexibility to have your recipient copies delivered via postal mail or securely accessed online. Choose the option that works best for you and ensure secure and reliable delivery of your important tax documents.

TIN Matching

TIN Matching

Avoid penalties and ensure accurate filing of your 1099-NEC by verifying your vendor's TIN against the IRS database. TaxBandits' TIN Matching feature simplifies the process and helps you file your taxes with confidence.

How to E-file Form 1099-NEC Online for 2023 with TaxBandits

Choose Form 1099-NEC

Select the Form 1099-NEC, choose the appropriate tax year and proceed. With TaxBandits you can file your Form 1099-NEC for current and previous tax years.

Enter Form Details

Enter the required information on the Form 1099-NEC either manually or bulk upload through custom CSV/Excel templates.

Review Form Information

Review the information entered on the Form 1099-NEC and make necessary changes
if needed.

Choose IRS Payment Methods

After reviewing the form, transmit the completed Form 1099-NEC to the IRS and State.

Deliver Recipient Copy (Online/Postal)

You can opt to distribute your recipient copies either through postal mailing or secure online portal.

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Ready to E-file Form 1099-NEC with the IRS and States?

How to E-file 1099-NEC

1099-NEC Integration Partners

Sage Partner

What Information is Required to E-file Form 1099 NEC Online?

TaxBandits for Every Business Information Required to E-file Form 1099-NEC
  • 1. Payer Details: Name, TIN, and Address
  • 2. Recipient Details: Name, TIN, and Address
  • 3. Nonemployee compensation
  • 4. Federal income tax withheld
    • a. Federal Details: Miscellaneous Incomes and Federal Tax Withheld
  • 5. State Filing Details: State Income, Payer State Number, and State Tax Withheld

Follow our instructions to know how to fill out Form 1099-NEC. Begin e-filing your Form 1099 with TaxBandits today, we will provide you with IRS updates throughout the filing process!

A Cloud-based 1099-NEC E-filing Solution with Amazing Features!

Supports All State Filing

Supports All State Filing

TaxBandits supports 1099 filing with the IRS and State Agencies that require it.

Data Integration

Data Integration

Seamlessly import your data from QuickBooks, Xero, Zoho Books and FreshBooks to simplify your 1099 filing process.

Deliver Recipient Copies

Deliver Recipient Copies

Choose to distribute your recipient copies using our postal mail and online
access options.

Supporting Services

Supporting Services

Ensure the accuracy of your 1099-NECs by requesting Form W-9. We also support
1099 corrections.

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Frequently Asked Questions On Form 1099-NEC

What is a 1099-NEC form used for?

Form 1099-NEC is used to report payments ($600 or more) made to non employees. Previously, this was reported on box no 7 of Form 1099-MISC. Now, the IRS has separated the reporting for non employee compensation by reintroducing Form 1099-NEC from the 2020 tax year.

  • Fees
  • Commissions
  • Prizes
  • Awards
  • Other forms of compensation for service

Who Is Required To File Form 1099-NEC?

The IRS requires the payers (Businesses or Individuals) to file Form 1099-NEC under the following conditions:

  • Made payments of at least $600 or more to the payee during the year.
  • Made payments to individuals who are not on your payroll.
  • Paid an individual, estate, partnership, or corporation.
  • Made payments for services related to your trade or business.
TaxBandits for Every Business

Want to know how to complete Form 1099-NEC? Check out this article to know how to fill out Form 1099-NEC.

When is the deadline to file Form 1099-NEC?

The deadline to file Form 1099-NEC is on the January 31, 2024, for the tax year 2023 irrespective of filing methods (paper or electronic filing). Similarly, the deadline to send the Recipient is also due by January 31st.

TaxBandits allows you to e-file Form 1099-NEC easily and securely. Get started with TaxBandits and file your
returns with the IRS.

Are there any exemptions to filing Form 1099 NEC?

Yes, there are some cases in which you are exempt from filing Form 1099-NEC. Below are the circumstances under which you are not required to file Form 1099-NEC.

  • You made payments to C or S corporation.
  • You paid for the merchandise, telegrams, telephone, freight, storage, and similar items.
  • You paid tax-exempt organizations.

Are there any IRS penalties for 1099-NEC?

The IRS will impose penalties for not filing the Form 1099-NEC on-time. The penalties will be imposed even if the payer failed to distribute the copies to the recipients by the deadline and for providing statements that are incomplete or inaccurate. The penalty ranges from $50/return to $270/return.

If you don’t file a Form 1099-NEC electronically with the IRS on time, you may be subject to Form 1099 NEC penalties.

Why is it important to collect W-9 Forms before filing 1099 Forms?

Form W-9 collects important information that you will need to file a 1099 Form at the end of the year to report payments made to vendors/independent contractors. The vendor is required to provide their Taxpayer Identification Number (TIN) or Social Security number (SSN), Legal Name, and address when completing Form W-9.

By requesting Form W-9 from all the vendors your business works with, you can ensure that you have current and accurate information for them.

Another benefit of Form W-9 is that it helps prevent Backup Withholding. This is the process of withholding a certain amount of the payments (typically 24%) made to vendors that have not provided an accurate TIN. The IRS requires businesses to withhold and submit these amounts until the vendor provides an accurate TIN.

What are the differences between Form 1099-NEC and Form 1099-K?

One of the major differences between 1099-NEC and 1099-K is that Form 1099-NEC is filed by the payers themselves (businesses or individuals) to report the non-compensation made to the vendors and contractors, whereas
Form 1099-K is filed by payment processors to report any payment made through payment card, payment apps, and online marketplaces.

Click here to learn more about the differences between 1099-NEC and 1099-K.

More FAQ on Form 1099

Frequently Asked Questions
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