IRS Form 1099-NEC for Non-Employee Compensation

1099 NEC 2021 is the new form initiated by the IRS to report Non-Employee Compensation. Before 2021, Form 1099 NEC is reported to the IRS using 1099 Misc Box 7. But from now, the Non-Employee Compensation needs to report to the IRS using Separate IRS 1099 NEC Form. Form1099online.com is the best place to help you for your 1099 NEC Online Filing.

What is Form 1099-NEC?

1099 NEC Tax Form is the replacement for 1099 Misc Box 7. All the independent contractor payments are reported to the Internal Revenue Service with the help of efile 1099 NEC Form. Form 1099 NEC 2021 is used to report Non-Employee Compensation to the IRS.

What are the Requirements of 1099 NEC Form?

Before Filing 1099 NEC Online, it is necessary to know the requirements of 1099 NEC Tax Form. They are

• 1. Payer's Information
• 2. Recipient's Information
• 3. Non-Employee Compensation amount
• 4. Federal income tax withheld.
• 5. State information

What can report on IRS 1099 NEC?

The following types of payments can made using the 1099 Non-Employee Compensation Form. If any person made $600 or more to an independent contractor then that person must File 1099 NEC Tax Form

• Fees
• Commissions
• Prizes
• Awards
• Other forms of compensation for services

Who receives 1099 NEC Form?

• Box 1: Services performed by someone who is not an employee
• Box 1: Cash payments made for fish (or other aquatic life) those purchased from anyone engaged in the trade or business of catching fish
• Box 1: Payments to an attorney
• Box 4: Each person from whom the company has withheld any federal income tax

How to E-FILE 1099 NEC Form?

The process of Form 1099 NEC Filing is simple and easy at form1099online.com. It is very similar to the other forms available on our website. Simply register and enter all the details. You can quickly File 1099 NEC on our website within minutes and without any errors. Send the Filed 1099 NEC on time to the IRS as well as to your recipient. If you miss filing 1099 NEC Online before the deadline you will be punished with the penalties by the IRS. So, don't neglect Form 1099 NEC Online Filing.

What Is the Deadline to Send 1099-NEC Forms?

Payers must file Form 1099 NEC by January 31 every year. For 2021 tax year, the due date will be February 1, 2021, because January 31, 2021, is on a Sunday. There is no chance of 30-day extension for 1099 NEC Filing. It may be available under certain conditions.

Mistakes to Avoid Filing 1099 NEC Form

• Don't write all business expenses
• Don't miss the appropriate records
• Failing to report all your income
• Fail to File on time
• Counting or adding expenses more than once