What is 1099-NEC form?

Form 1099-NEC, Nonemployee Compensation, is a form that solely reports nonemployee compensation. Form 1099-NEC is not a replacement for form 1099-MISC. Form 1099-NEC is only replacing the use of form 1099-MISC for reporting independent contractor payments.

The IRS has brought back form 1099-NEC to separate nonemployee expenses and clear up the confusion. Prior to 2020, you would include nonemployee compensation in Box 7 on form 1099-MISC. In 2020, Box 7 on form 1099-MISC will turn into “Payer made direct sales of $5,000 or more of consumer products to a buyer (recipient) for resale,” and nonemployee compensation must be reported on form 1099-NEC instead.

Who must file 1099-NEC form?

Use form 1099-NEC to report nonemployee compensation. Nonemployee compensation includes the following payment types to independent contractors:
  • Fees
  • Commissions
  • Prizes
  • Awards
  • Other forms of compensation for services

If you pay an independent contractor nonemployee compensation, separate nonemployee compensation payments from all of your other form 1099-MISC payments.

Starting up again in 2020, fill out form 1099-NEC if you have any workers you paid $600 or more to in nonemployee compensation.

How to eFile 1099-NEC form?

It takes 3 simple steps to eFile your 1099-NEC form with 1099smartfile.com

  • Sign up on our website for free.
  • Fill in the payer, recipient(s) information. Create an e-Filing (electronic version of 1099-NEC form).
  • Submit the e-Filing and we take care of the rest.

You will receive an email status confirmation within 24 hours depending on the IRS workload and you can check your status on 1099smartfile.com.

Filing Deadlines:

Tax FormRecipient DeadlinePaper Filinge-Filing
1099-NECJan 31, 2024Jan 31, 2024Jan 31, 2024
1099-MISC (No Data in Box 8 or 10)Jan 31, 2024Feb 28, 2024April 1, 2024
1099-MISC (Data in Box 8 or 10)Feb 15, 2024Feb 28, 2024April 1, 2024