1099-NEC Generator
Create professional 1099-NEC forms for your contractors and freelancers. Free preview with watermark, instant PDF download after payment.
Everything You Need to Know About Form 1099-NEC
What is Form 1099-NEC?
Form 1099-NEC (Nonemployee Compensation) is used to report payments made to independent contractors, freelancers, and other self-employed individuals. You must file if you paid $600 or more during the tax year for services performed for your trade or business.
Filing Deadlines
January 31: This is the deadline to both provide Copy B to recipients AND file Copy A with the IRS (whether filing on paper or electronically). There is no automatic extension for this form.
Who Needs to File?
Any business that paid $600 or more to a non-employee for services must file a 1099-NEC. This includes payments to freelancers, consultants, contractors, and other independent workers. Payments to corporations are generally exempt.
What This Tool Generates
This tool generates Copy B (Recipient copy) of Form 1099-NEC. This is the copy you provide to the contractor for their tax records. For IRS submission (Copy A), you'll need to e-file through the IRS FIRE system or use an approved e-filing service.
Frequently Asked Questions
When do I need to issue a 1099-NEC?
You must issue a 1099-NEC to any contractor, freelancer, or non-employee you paid $600 or more during the tax year for services performed for your trade or business.
What's the difference between 1099-NEC and 1099-MISC?
The IRS brought back Form 1099-NEC in 2020 specifically for nonemployee compensation. Previously, this was reported in Box 7 of Form 1099-MISC. Now, 1099-MISC is used for other types of payments like rent, prizes, and royalties.
Do I need a TIN for the contractor?
Yes. Before making payments, request a completed Form W-9 from each contractor to get their Tax Identification Number (TIN). This can be their Social Security Number (SSN) or Employer Identification Number (EIN).
What if I don't have a TIN for the contractor?
If a contractor doesn't provide a TIN, you may be required to withhold 24% of the payment as backup withholding and report it in Box 4 of the 1099-NEC.
What are the penalties for late filing?
Penalties for late filing range from $60 to $330 per form, depending on how late you file. If you intentionally disregard the filing requirement, the penalty is at least $660 per form with no maximum.