Who Needs to File 1099-NEC Form
Form 1099-NEC is required for businesses that have paid:
- 1. $600 or more to any non-employee service provider, including freelancers, independent contractors, and gig workers;
- 2. Any amount to fishing boat crew members;
- 3. At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest.
Note:
For payments to incorporated businesses or for goods (not services), 1099-NEC is typically not required.
How To File 1099 NEC Electronically
Navigate the 1099-NEC filing process with ease using PDFLiner:
Step 1: Create an Account or Log In
Get started at PDFLiner with a quick sign-up or login. Then click the blue button here to start filling out your 1099.
Step 2: Enter Payer Information
Input your business details:
- Choose the type of your TIN;
- Enter SSN (for individuals) and EIN (for business);
- Your legal name and DBA (if applicable);
- Complete address.
Step 3: Enter Recipient Information
Provide contractor details:
- Pick the recipient's TIN type and write the number you received with a W-9 Form.
- Full name or business name.
- Mailing address.
Step 4: Validate the recipient's TIN
Validating the Taxpayer Identification Number (TIN) is crucial for accurate 1099-NEC filing. Once you enter all the info, click the "Validate now" button and wait until the TIN is verified.
Note:
If the TIN doesn't match IRS records, contact the recipient to confirm the information. They may need to update their records with the IRS.
Step 5: Fill in Payment Information
Report compensation details:
- Box 1 - Nonemployee compensation (the key box for 1099-NEC)
- Box 4 - Federal income tax withheld (if applicable)
- Boxes 5-7 - State tax information (for applicable states)
Step 6: Review and Validate
Click the "Submit to IRS" button at the top and see the summary. Our system automatically checks for common errors and missing information and prepares a summary for your double-check.
Step 7: Submit for E-Filing
With a single click, securely transmit your forms to the IRS and move on to the next form if needed.
Step 8: Receive Confirmation
Once you submit the 1099, it is added to a queue. You will receive updates on every status change on your form and a final confirmation by email and on your dashboard.
PDFLiner transforms 1099-NEC filing from a daunting task to a straightforward process, ensuring accuracy and compliance every step of the way.
1099-NEC Deadline for Tax Year 2023
Recipient Copy and IRS Filing (both paper and electronic), January 31, 2024. The deadlines are different from the 1099-MISC For 2023 Tax Year ones.
Beat the rush! With PDFLiner, you can prepare and schedule your 1099-NEC filings well before the deadline.
Filing your 1099-NEC online doesn't have to be complicated. With PDFLiner, you can securely and accurately file your form in minutes. Our eFiling feature simplifies the process, and our guide will walk you through each step. Whether you're a business owner or a tax professional, our platform makes it easy to file 1099-NEC online.
