File Form 1099-NEC: Report Nonemployee Compensation for 2025
Securely file your 1099-NEC online with our IRS-authorized platform for fast and accurate reporting.
Simple Steps to E-File Form 1099-NEC
Register with Tax2efile- Provide Required Tax Information
- Submit Your Form to IRS
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Effortlessly E-file IRS Form 1099-NEC Online with Tax2efile
Tax2efile is an IRS-authorized e-filing service provider, offering seamless 1099-NEC filing options to report non-employee compensation. Our user-friendly platform walk-through with a step-by-step filing process facilitates users to complete their tax return in minutes and transmit their 1099-NEC to the IRS safely and securely. Don’t let the tax season stress you. Register with Tax2efile today!
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Fast & Easy Filing
Our unparalleled e-filing system allows taxpayers to submit the 1099-NEC to the IRS in a few minutes.
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We manage all the details for you. E-filing with the tax authorities, secure printing, and Copy B mailing to your contractors.
Built-in-Validation
Our system is equipped with a proprietary method that checks your data against the rules set by the IRS before submission.
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What is Form 1099-NEC (Nonemployee Compensation)?
IRS Form 1099-NEC (Nonemployee Compensation) is the newly implemented form for filing taxes for self-employed individuals. The IRS has directed that starting from the 2020 tax year, employers of labor and organizations will be required to use the 1099-NEC Form. This will be for recording and reporting the income and compensation of non-employees, independent contractors, or freelancers. For payments to non-employees over $600, employers and business taxpayers will have to use the 1099-NEC Form.
Form 1099-NEC is not a replacement for Form 1099-MISC. Form 1099-NEC is only replacing the use of 1099-MISC for reporting independent contractor payments if the company made payments with a total of $600 or more to a non-employee.
Non-employee compensation can include:
- Fees or Benefits or Commissions or Rents
- Prizes and awards for services performed by a non-employee
- Other forms of compensation for services performed for your trade or business by an individual who is not your employee
- Small businesses or 409A attorneys
Complete Guide to Form 1099-NEC E-Filing:
Required Information and Form Structure
Information Required to E-file Form 1099-NEC Online
- Name, TIN or EIN or SSN, address, and phone number
- Recipient Details (Name, TIN or EIN or SSN, and Address)
- The total amount of non-employee compensation
- Federal and state income tax withheld
- State information
Watch our step-by-step video on How to E-File IRS Form 1099-NEC with Tax2efile
Guide to Understand 1099-NEC Tax Form
1099-NEC Form contains two copies. These two copies are categorized into Copy A and Copy B.
- Copy A is the copy that will be sent to the IRS, while
- Copy B will be sent to the business’s contractor with their consent.
Key Information Boxes
- Both payer and recipient information includes the filer’s name, address, and taxpayer ID. Non-employee compensation can be found in Box 1 including the total compensation for the past tax year.
- Box 4 is to report any federal income tax withheld, as it’s uncommon that this will be the case unless the filer has received a backup withholding order for that filer. If the filer’s state has an income tax, include the total payment amount to that filer for the year and any state tax you withheld in Box 5.
When is the Form 1099-NEC Due Date?
The 1099 NEC Forms are required to be filed by January 31st for the states that participate in the Combined Federal State Filing.
Independent contractors are advised to contact their employers if they are yet to receive a copy of the 1099 NEC Form by January 31st.
Contractors and self-employed individuals would require a copy of the 1099 NEC Tax Form for their respective tax returns.
Failure of businesses to meet the deadline comes with a penalty issued by the IRS between the range of a $50 and $260 fine.
Starting from the year 2021, the IRS recommends sending copies of Form 1099-NEC to workers you paid for non-employee compensation by January 31st or the next business day.
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Frequently Ask Questions
Find answers to commonly asked questions about our products and services.
1099 NEC is used to report non-employee compensation made during the course of tax year.
Federal, state, or local governments file this form if they made payments of: Unemployment compensation. State or local income tax refunds, credits, or offsets. Reemployment trade adjustment assistance (RTAA) payments.
Details required to file Form 1099-NEC are Payer and recipients Name, Address, TIN as well as Nonemployee Compensation amount, Federal income tax withheld, state tax withheld, state payers state number, and state income
Yes, Tax2efile offers a bulk upload feature that allows the user to upload all the Recipient to an excel sheet for a faster process.
Tax2efile allows you to correct a mistake to the payers’ information for TINs, Names & amounts.
Yes, Form 1099-NEC is specifically used to report nonemployee compensation, including payments made to independent contractors, freelancers, consultants, and other non-employees for services rendered. Tax2efile helps you correctly identify and report such payments to ensure accurate filing.
Yes, Tax2efile offers printing and mailing service! Our dedicated team will print and mail out each form you filed.
Using our fast electronic service, you can complete your filing within 5 minutes.
To file Form 1099-NEC for a single return the filing fee is $3.25.
The IRS requires Form 1099-NEC to be submitted by February 28 through the mail and by March 31 if you file the form electronically however, recipients’ copy should be mailed by January 31.
Failure to file the 1099 form by the deadline may result in IRS penalties. The penalty can be from $60 per 1099 Form, the maximum penalty can be up to $630,500. If you submit Form more than 31 days to before August 1, the penalty increases to $120 per 1099 Form and maximum penalty up to $1,891,500. If you file after August 1, the penalty can be from $310 per 1099 Form and maximum penalty up to $3,783,000. Additionally, there are penalties for failure to furnish the payee statement.
Yes, Tax2efile typically supports filing Form 1099-NEC for payments made to foreign contractors or service providers. It provides guidance on the specific reporting requirements for such payments, including any additional information needed for compliance with tax laws.
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