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E-file 2020 Form 1099 NEC Online

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State Filing

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Quickly and easily e-file your State 1099 Forms along with any State Recon/Transmittal Forms.

Postal Mail & Online Access

Postal Mail & Online Access

TaxBandits delivers your recipient copies by mail. We offer easy access to form copies through the secure TaxBandits’ Online Access Portal.

FIRE File Upload

FIRE File Upload

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Bulk Upload

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

  • 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

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Frequently Asked Questions

What is IRS Form 1099-NEC?

Form 1099-NEC is used to report payments made to nonemployees or independent contractors for their work. Previously, this was reported in box no 7 of Form 1099-MISC. Now, the IRS has separated box 7 from Form 1099-MISC by reintroducing Form 1099-NEC. Learn more about the difference between Form 1099 MISC and NEC.

For the tax year 2020, the payer must use Form 1099-NEC to report nonemployee compensation of $600 or more paid to the contractors for their service. The following payments should be reported in Form 1099-NEC.

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

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Who Is Required To File Form 1099-NEC?

Payers must file Form 1099-NEC under the following conditions

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

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When is the deadline to file Form 1099-NEC?

It is mandatory to file your Form 1099-NEC before the deadline to avoid penalties. Usually, the deadline to file Form 1099-NEC is January 31. If any filing deadline falls on a Saturday, Sunday, or legal holiday, you may file your return on the next business day.

For the tax year 2020, the deadline for filing Form 1099-NEC is February 1, 2021. On or before the deadline, you must send Copy A to the IRS and Copy B to the independent contractor, a recipient. Then, keep a Copy C for your business records, and Copy 1 should be sent to the state department if needed.

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

What are the Boxes in Form 1099-NEC?

IRS Form 1099-NEC comprises 7 boxes and other columns to enter various information. Let's see the complete explanation below.

  • Box 1: Nonemployee compensation

    Enter nonemployee compensation of $600 or above in this box, including fees, commissions, prizes, awards, and other compensation forms.

  • Box 4: Federal Income Tax withheld

    Fill in the backup withholding. For instance, if the recipient has not furnished their TIN, you have to withhold a certain portion from the amount and report in box 1.

  • Box 5 - 7: State information

    Use these boxes to enter your state information.

    • Box 5 - Enter the state income tax amount withheld from the payment.
    • Box 6 - Enter the abbreviated state name and payer's state identification number.
    • Box 7 - Enter the State income.

Note: If you have not withheld any state income tax, you can leave these boxes empty.

If you want to e-file Form 1099-NEC, TaxBandits is here to help!

Click here to learn more on Form 1099-NEC Instructions.

Are there any exemptions to filing Form 1099 NEC?

There are some cases in which you are exempt from filing Form 1099-NEC. You don't have to file Form 1099-NEC under the following circumstances.

  • 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 imposes penalties for the not filing and distributing 1099 recipient copies by the deadline. Penalties will be imposed for providing statements that are incomplete or inaccurate. The penalty will be majorly based on the 2 conditions:

  • Late filing penalties
  • Not filing penalties

The penalty ranges from $50/return to $270/return.

Learn more about Form 1099 NEC penalties.

More FAQ on Form 1099

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