What is the 1099 NEC Form?
The business will use the 1099 NEC Form if they made payments totaling $600 or more to a non-employee such as an independent contractor.
Most firms must submit the new 2022 tax form 1099-NEC by January 31, 2023. The new form replaces the 1099-MISC that was previously used to report nonemployee remuneration paid in 2022.
What Form 1099-NEC Payment Types Can You Report?
The following types of payments made from your trade or business in 2022 should be reported using Form 1099-NEC:
For services rendered by a third party for whom you have paid at least $600 but who is not one of your employees (to be reported in box 1)
For legal services that you spent an attorney at least $600 for (to be reported in box 1)
Regardless of the payment amount for federal tax withheld in accordance with the backup withholding regulations (to be reported in box 5).
What Form 1099-NEC Payments Are Not Reportable?
Form 1099-NEC does not require reporting of personal payments. Payments given to a corporation are typically also exempt from reporting here. Note that this regulation does not apply if an attorney is established as a company, and you may disclose those payments on the form.
What day must Form 1099-NEC be filed?
By January 31, 2023, Form 1099-NEC must be sent to the IRS and the receiver. The 2022 Form 1099-MISC filing date is sooner than this one. To ensure that they have the majority of the income being reported for individual tax returns by January 31, 2023, the IRS wants Form 1099-NEC filed concurrently with W-2s. The IRS will be able to verify people’s income earlier than in the past thanks to this.