IRS Form 1099-NEC is a tax return that businesses and individuals must file each year to report payments made to independent contractors or freelancers. This documents the income they received from you so it can be properly reported on their tax return.
Form 1099-NEC replaces the previous 1099-MISC form for reporting non-employee compensation.
If you or your business paid $600 or more in non-employee compensation in a tax year, you are required to file Form 1099-NEC with the IRS and provide a copy to the contractor. This includes payments to contractors, freelancers, consultants, attorneys, etc.
The IRS states these payments should not be reported on Form 1099-NEC.
The due date for filing Form 1099-NEC is January 31st of the year following the payment. For example, if you made payments in 2023, you must file Form 1099-NEC by January 31, 2024.
Avoid the last-minute 1099-NEC deadline stress!
E-file now for easy IRS compliance and peace of mind.
The due date to provide copies of Form 1099-NEC to recipients is also January 31. By providing recipient copies within the deadline, you can ensure the recipient has the tax documentation they need to accurately report the income on their tax return.
If you fail to file Form 1099-NEC for your contractors within the deadline, the IRS will impose a penalty for each missed return. Below is the breakdown of Form 1099-NEC penalties:
|Penalty per return
|Up to 30 days
|31 days late through August 1
|After August 1 or not filed
Be proactive! E-file your 1099-NEC forms ahead of the deadline.
Let's see line-by-line instructions on how to fill out Form 1099-NEC.
Enter the nonemployee compensation of $600 or more paid in the tax year.
Check the box if your business sold $5,000 or more worth of consumer goods directly to an individual who will then resell the items. Do not enter a dollar amount — just check the box.
Report any federal income tax that was withheld from payments made to a contractor or freelancer.
This is known as backup withholding. It applies when a payee has not provided you with their TIN.
Boxes 5–7 are optional state-level reporting boxes. You do not need to complete these for the IRS.
Form 1099-NEC can be filed electronically or by postal mail.
E-filing Form 1099-NEC is recommended by the IRS as the process is quick and simple. Additionally, you will receive notifications as soon as the IRS processes your return.
To e-file Form 1099-NEC, you can choose an IRS-authorized e-file service provider like TaxZerone.
With TaxZerone, you can complete the e-filing process in just a few minutes and clicks. Simply fill out the form, review and transmit it to the IRS, and share the recipient copy.
If you choose to paper-file Form 1099-NEC, here are the steps you need to follow:
Important notes for paper filing:
The mailing address for Form 1099-NEC varies depending on your business location. Below is a table summarizing the mailing address for Form 1099-NEC:
|If your business operates in or your legal residence is…
|Mail Form 1099-NEC to…
|Alabama, Arizona, Arkansas, Delaware, Florida, Georgia, Kentucky, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Texas, Vermont, Virginia
|Internal Revenue Service
Austin Submission Processing Center
P.O. Box 149213
Austin, TX 78714
|Alaska, Colorado, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Washington, Wisconsin, Wyoming
|Internal Revenue Service Center
P.O. Box 219256
Kansas City, MO 64121-9256
|California, Connecticut, District of Columbia, Louisiana, Maryland, Pennsylvania, Rhode Island, West Virginia
|Department of the Treasury Internal Revenue Service Center
1973 North Rulon White Blvd.
Ogden, UT 84201
|Outside the United States
|Internal Revenue Service,
Austin Submission Processing Center,
P.O. Box 149213,
Austin, TX 78714
You can complete Form 1099-NEC filing in 3 simple steps. But, before you begin the e-filing process, make sure you have all the required information ready, so you can complete filing swiftly.
Once you have this information ready, you can follow the steps below to e-file Form 1099-NEC using TaxZerone.
When you choose to e-file Form 1099-NEC with TaxZerone, you can: