What is Form 1099-NEC?
259 views | Last modified 10/12/2023 5:36:29 AM EST | Added by TaxBandits Team

Applicable To
94X 1099 W-2 ACA W-4

Form 1099-NEC is used to report payments (payments of at least $600 or more) made to nonemployees during the tax year. The payments, including,

  • Fees
  • Rent
  • Royalties
  • Commissions
  • Prizes
  • Awards
  • Other forms of compensation for service related to your trade or business.

Until 2019, payers used Form 1099-MISC to report miscellaneous payments made to contractors, including non-employee compensations in Box 7. At the beginning of 2020, the IRS announced that the Nonemployee Compensation would be reported in a new separate form, i.e., 1099-NEC.

The main purpose of introducing Form 1099-NEC is to eliminate the confusion of having two deadlines for 1099-MISC

If you want to file nonemployee compensation for prior years, use 1099-MISC to report independent contractors' payments.

With TaxBandits, payers can easily file 1099-NEC for the current tax year in a few minutes. He/she can also furnish copies of it to their contractors via email or postal mail with just a click of a button. 

Payers can now use TaxBandits’ new scheduling feature to file Form 1099-NEC and 1099-MISC on a future date. It helps you to revise the form freely without penalty. Make sure the scheduling date is on or before the IRS deadline.

Was this helpful? Yes No

Sign Up for a
FREE TaxBandits Account!

Register Now

Returning User? Sign in

Couldn't find what you
are looking for?

Contact Us

(704) 684-4751 support@taxbandits.com