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What Is Form 1099-NEC?

This Form 1099-NEC is used to report non-employee compensation; it is a new form as of the tax year 2020. This replaces form 1099-MISC Box 7 for reporting non-employee compensation.

When You Need to File Form 1099-NEC?

  • If you’ve made payments of $600 or more to an individual who is not your employee (personal payments are not reportable)
  • If the following four conditions are met, you must file an NEC:
    • You made the payment to someone who is not your employee
    • You made the payment for services in the course of your trade or business
    • You made the payment to an individual, a partnership, an estate, or, in some cases, a corporation
    • You made payments to the payee of at least $600 during the year

Who Must File 1099-NEC?

Any business that meets the above conditions and is operating for profit or gain must file. Non-profit businesses and government agencies are considered to be in a trade or business and are required to file 1099-NEC as well.

Other organizations subject to these reporting requirements include:

  • Trusts of a qualified pension or profit-sharing plans of employers
  • Certain organizations exempt from tax under section 501(c) or 501(d)
  • Farmers’ cooperatives that are exempt from tax under section 521
  • Widely held fixed investment trusts

Form 1099-NEC Deadlines 2020

Forms must be transmitted to the IRS before the deadline. The due date for eFiling for Form 1099-NEC is February 1. If the due date falls on a weekend or holiday, it will be due the next business day.

How to eFile 1099-NEC for the Year 2020?

Tax1099 is the go-to source for your 1099 filings. You can eFile Form 1099-NEC Online for the year 2020 using Tax1099. Don’t wait for the deadline eFile Now.!