More than 100,000+ Businesses trust TaxBandits for these Amazing Features
Direct State Filing for 50 states
Quickly and easily efile your State 1099 Forms along with any State Recon/Transmittal Forms that you may need.
Postal Mail & Online Access
TaxBandits delivers your recipient copies by postal mail and through secure online access.
FIRE File Upload
Do you have the 1099 data in the FIRE file format? We e-file your Form 1099 and mail the copies to your recipient.
Make use of our bulk upload template and simplify the time taken in manually uploading your 1099 Form data.
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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
Start e-filing your Form 1099 NEC with TaxBandits and Get Instant Approval from the IRS.
How to E-file Form 1099-NEC Online for 2020
Enter Payer Details
Enter Recipient Details
Review your Form 1099 NEC / 1096
Transmit your Form 1099 NEC to the IRS
Recipient Copy (Postal)
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, it was reported in box no 7 of Form 1099-MISC. Now, the IRS has separated box 7 from Form 1099-MISC and introduced it as a new form.
From 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.
- Other forms of compensation for service
You can e-file Form 1099-NEC at TaxBandits before the deadline and stay away from unnecessary penalties.
Who Is Required To File Form 1099-NEC?
The payer must file Form 1099-NEC if the following conditions are met.
- You made payments of at least $600 or more to the payee during the year.
- You made payments to individuals who are not in your payroll.
- You paid an individual, estate, partnership, or corporation.
- You made payments for services related to your trade or business.
TaxBandits is here to help you with Form 1099-NEC e-filing. Create a free account to get started with TaxBandits.
When is the deadline to file Form 1099-NEC?
To avoid penalties from the IRS, it is mandatory to file your Form 1099-NEC before the deadline. 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. Before the deadline, you need to 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 reported 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 the boxes empty.
If you want to e-file Form 1099-NEC, TaxBandits is here to help!
What are the exceptions to File Form 1099 NEC?
There are some cases where you are exempted from filing Form 1099-NEC. You don't have to file Form 1099-NEC if the following criteria are met.
- 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.
Form 1099 Correction
If you found any errors after filing your 1099 return with the IRS, correct the information as soon as possible and submit the corrected form and Form 1096 to the IRS.
Form 1099 Penalty
A penalty will be charged if you fail to issue Form 1099 to the payee. The amount of the penalty is based on when you file the correct information return.