Form 1099-NEC is a new IRS tax form designed to report Nonemployee Compensation.
#2: Who will need to file 1099-NEC
Beginning with tax year 2020, you will need to file Form 1099-NEC, Nonemployee Compensation (NEC), for each person in the course of your business to whom you have paid the following during the year:
At least $600 in:
1. Services performed by someone who is not your employee (including parts and materials) (box 1);
2. Cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish (box 1); or
3. Payments to an attorney (box 1). (See Payments to attorneys, later.)
You must also file Form 1099-NEC for each person from whom you have withheld any federal income tax (report in box 4) under the backup withholding rules regardless of the amount of the payment.
No. Form 1099-NEC is not a replacement for Form 1099-MISC. 1099-NEC is designed to report nonemployee compensation only.
#4: How to file 1099-NEC
Both ezW2 software and ez1099 software can be used to paper print, PDF print and efile 1099-nec forms. We offer the demo versions. Please feel free to test drive with no obligation and no risk.
Option 1: ezW2 software(from $49): for W2, W3, 1099-nec and 1096
If you file 1099-NEC only, we suggest ezW2 software.
With ezW2 (or ez1099) software, you can print 1099-NEC forms Copy 1, 2, B, C on white paper. IRS does not certify the substitute forms right now. You need to print 1099-NEC copy A and 1096 on the red-ink forms.
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