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Download 1099 Nec Template

The 1099-NEC form is a tax document used in the United States to report nonemployee compensation. This form is essential for businesses that pay independent contractors or freelancers, as it helps ensure accurate reporting of income to the IRS. Understanding the requirements and implications of the 1099-NEC is crucial for both payers and recipients to avoid potential penalties and ensure compliance with tax regulations.

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Content Overview

The 1099-NEC form is a crucial document for reporting nonemployee compensation, primarily used by businesses to report payments made to independent contractors and freelancers. This form, which was reintroduced in 2020, serves as a replacement for reporting nonemployee compensation on the 1099-MISC form. It is essential for both payers and recipients to understand its significance, as it directly impacts tax obligations. For the calendar year, the form captures various details, including the payer's and recipient's taxpayer identification numbers (TINs), the total amount of nonemployee compensation, and any federal or state taxes withheld. It is important to note that while Copy A of the form is provided for informational purposes and appears in red, it must be ordered directly from the IRS to ensure it is scannable. Copies B and others, which appear in black, can be downloaded and printed for distribution to recipients. Filing can be done electronically through the IRS's FIRE system, making it easier for businesses to comply with reporting requirements. Understanding the nuances of the 1099-NEC is vital for ensuring accurate tax reporting and avoiding potential penalties for misreporting or failing to report income.

Key takeaways

Here are key takeaways about filling out and using the 1099-NEC form:

Copy A is for informational purposes only. It appears in red and should not be printed from the website.
Use official printed versions of Copy A for filing with the IRS to avoid penalties.
Copy B and other copies can be downloaded and printed. These are for providing information to recipients.
To order official forms, visit the IRS website and navigate to the order forms section.
Electronic filing is an option. Use the IRS FIRE system or the AIR program for submitting information returns.
Ensure accurate information, including taxpayer identification numbers (TINs), is reported on the form.
Report nonemployee compensation correctly. This includes amounts shown in box 1 for self-employment income.
Be aware of backup withholding rules. If a TIN is not provided, backup withholding may apply.
Stay updated on IRS guidelines. Check the IRS website for the latest information and instructions related to Form 1099-NEC.

Guide to Writing 1099 Nec

Filling out the 1099-NEC form is an important task for reporting nonemployee compensation. After you complete the form, ensure that you send the correct copies to both the recipient and the IRS. This process helps maintain compliance with tax regulations.

Obtain the official form: Visit www.IRS.gov/orderforms to order the official IRS 1099-NEC form. Do not use a downloaded version of Copy A, as it cannot be scanned by the IRS.
Fill in the payer's information: Enter the payer's name, address, and telephone number in the designated fields.
Enter the payer's TIN: Provide the Taxpayer Identification Number (TIN) for the payer in the appropriate box.
Fill in the recipient's information: Write the recipient's name and address, including any apartment number if applicable.
Enter the recipient's TIN: Include the recipient's TIN in the designated box.
Report nonemployee compensation: In Box 1, enter the total amount of nonemployee compensation paid to the recipient.
Complete additional boxes if necessary: If applicable, fill in Boxes 4, 5, 6, and 7 for backup withholding and state tax withheld.
Check for corrections: If this is a corrected form, check the box indicating that it is corrected.
Distribute copies: Send Copy B to the recipient and file Copy A with the IRS along with Form 1096 if required.

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Attention:

Copy A of this form is provided for informational purposes only. Copy A appears in red, similar to the official IRS form. The official printed version of Copy A of this IRS form is scannable, but the online version of it, printed from this website, is not. Do not print and file copy A downloaded from this website; a penalty may be imposed for filing with the IRS information return forms that can’t be scanned. See part O in the current General Instructions for Certain Information Returns, available at www.irs.gov/form1099, for more information about penalties.

Please note that Copy B and other copies of this form, which appear in black, may be downloaded and printed and used to satisfy the requirement to provide the information to the recipient.

To order official IRS information returns, which include a scannable Copy A for filing with the IRS and all other applicable copies of the form, visit www.IRS.gov/orderforms. Click on Employer and Information Returns, and we’ll mail you the forms you request and their instructions, as well as any publications you may order.

Information returns may also be filed electronically using the IRS Filing Information Returns Electronically (FIRE) system (visit www.IRS.gov/FIRE) or the IRS Affordable Care Act Information Returns (AIR) program (visit www.IRS.gov/AIR).

See IRS Publications 1141, 1167, and 1179 for more information about printing these tax forms.

7171

VOID

CORRECTED

PAYER’S name, street address, city or town, state or province, country, ZIP

OMB No. 1545-0116

or foreign postal code, and telephone no.

Form 1099-NEC

Nonemployee

(Rev. January 2022)

Compensation

For calendar year

PAYER’S TIN

RECIPIENT’S TIN

Nonemployee compensation

Copy A

For Internal Revenue

RECIPIENT’S name

Payer made direct sales totaling $5,000 or more of

Service Center

consumer products to recipient for resale

File with Form 1096.

For Privacy Act and

Paperwork Reduction Act

Street address (including apt. no.)

Notice, see the current

Federal income tax withheld

General Instructions for

Certain Information

City or town, state or province, country, and ZIP or foreign postal code

Returns.

State tax withheld

6 State/Payer’s state no.

7 State income

Account number (see instructions)

2nd TIN not.

Form 1099-NEC (Rev. 1-2022)

Cat. No. 72590N

www.irs.gov/Form1099NEC

Department of the Treasury - Internal Revenue Service

Do Not Cut or Separate Forms on This Page — Do Not Cut or Separate Forms on This Page

	VOID	CORRECTED
PAYER’S name, street address, city or town, state or province, country, ZIP						OMB No. 1545-0116
or foreign postal code, and telephone no.						Form 1099-NEC
						Form 1099-NEC	Nonemployee
							Nonemployee
						(Rev. January 2022)	Compensation
						For calendar year
						20
PAYER’S TIN	RECIPIENT’S TIN		1	Nonemployee compensation			Copy 1
			$				Copy 1
			$				For State Tax
RECIPIENT’S name			2	Payer made direct sales totaling $5,000 or more of			For State Tax
				consumer products to recipient for resale			Department

			3
Street address (including apt. no.)
Street address (including apt. no.)
			4	Federal income tax withheld
City or town, state or province, country, and ZIP or foreign postal code			$
			5	State tax withheld	6 State/Payer’s state no.		7 State income
			$				$
Account number (see instructions)			$				$
			$				$
Form 1099-NEC (Rev. 1-2022)		www.irs.gov/Form1099NEC				Department of the Treasury - Internal Revenue Service

CORRECTED (if checked)

PAYER’S name, street address, city or town, state or province, country, ZIP				OMB No. 1545-0116
or foreign postal code, and telephone no.				Form 1099-NEC
				Form 1099-NEC	Nonemployee
					Nonemployee
				(Rev. January 2022)	Compensation
				For calendar year
				20

PAYER’S TIN	RECIPIENT’S TIN	1 Nonemployee compensation			Copy B
		$			For Recipient
RECIPIENT’S name		2 Payer made direct sales totaling $5,000 or more of			This is important tax
RECIPIENT’S name		2 Payer made direct sales totaling $5,000 or more of			information and is being
		consumer products to recipient for resale			information and is being
		consumer products to recipient for resale			furnished to the IRS. If you are
					furnished to the IRS. If you are
		3			required to file a return, a
		3			negligence penalty or other
Street address (including apt. no.)

					sanction may be imposed on
		4 Federal income tax withheld			you if this income is taxable
		4 Federal income tax withheld			and the IRS determines that it
City or town, state or province, country, and ZIP or foreign postal code		$			and the IRS determines that it
		$			has not been reported.
		5 State tax withheld	6 State/Payer’s state no.		7 State income
		$			$
Account number (see instructions)		$			$
		$			$
Form 1099-NEC (Rev. 1-2022)	(keep for your records)	www.irs.gov/Form1099NEC		Department of the Treasury - Internal Revenue Service

Instructions for Recipient

You received this form instead of Form W-2 because the payer did not consider you an employee and did not withhold income tax or social security and Medicare tax.

If you believe you are an employee and cannot get the payer to correct this form, report the amount shown in box 1 on the line for “Wages, salaries, tips, etc.” of Form 1040, 1040-SR, or 1040-NR. You must also complete Form 8919 and attach it to your return. For more information, see Pub. 1779, Independent Contractor or Employee.

If you are not an employee but the amount in box 1 is not self- employment (SE) income (for example, it is income from a sporadic activity or a hobby), report the amount shown in box 1 on the “Other income” line (on Schedule 1 (Form 1040)).

Recipient’s taxpayer identification number (TIN). For your protection, this form may show only the last four digits of your TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)). However, the issuer has reported your complete TIN to the IRS.

Account number. May show an account or other unique number the payer assigned to distinguish your account.

Box 1. Shows nonemployee compensation. If the amount in this box is SE income, report it on Schedule C or F (Form 1040) if a sole proprietor, or on Form 1065 and Schedule K-1 (Form 1065) if a partnership, and the recipient/partner completes Schedule SE (Form 1040).

Note: If you are receiving payments on which no income, social security, and Medicare taxes are withheld, you should make estimated tax payments. See Form 1040-ES (or Form 1040-ES (NR)). Individuals must report these amounts as explained in these box 1 instructions. Corporations, fiduciaries, and partnerships must report these amounts on the appropriate line of their tax returns.

Box 2. If checked, consumer products totaling $5,000 or more were sold to you for resale, on a buy-sell, a deposit-commission, or other basis. Generally, report any income from your sale of these products on Schedule C (Form 1040).

Box 3. Reserved for future use.

Box 4. Shows backup withholding. A payer must backup withhold on certain payments if you did not give your TIN to the payer. See Form W-9, Request for Taxpayer Identification Number and Certification, for information on backup withholding. Include this amount on your income tax return as tax withheld.

Boxes 5–7. State income tax withheld reporting boxes.

Future developments. For the latest information about developments related to Form 1099-NEC and its instructions, such as legislation enacted after they were published, go to www.irs.gov/Form1099NEC.

Free File Program. Go to www.irs.gov/FreeFile to see if you qualify for no-cost online federal tax preparation, e-filing, and direct deposit or payment options.

	VOID	CORRECTED
PAYER’S name, street address, city or town, state or province, country, ZIP						OMB No. 1545-0116
or foreign postal code, and telephone no.						Form 1099-NEC
						Form 1099-NEC	Nonemployee
							Nonemployee
						(Rev. January 2022)	Compensation
						For calendar year
						20
PAYER’S TIN	RECIPIENT’S TIN		1	Nonemployee compensation			Copy 2
			$				Copy 2
			$				To be filed with
RECIPIENT’S name			2	Payer made direct sales totaling $5,000 or more of			To be filed with
				consumer products to recipient for resale			recipient’s state
							income tax
			3				income tax
			3				return, when
Street address (including apt. no.)							return, when
Street address (including apt. no.)							required.
			4	Federal income tax withheld
City or town, state or province, country, and ZIP or foreign postal code			$
			5	State tax withheld	6 State/Payer’s state no.		7 State income
			$				$
Account number (see instructions)			$				$
			$				$
Form 1099-NEC (Rev. 1-2022)		www.irs.gov/Form1099NEC				Department of the Treasury - Internal Revenue Service

	VOID		CORRECTED
PAYER’S name, street address, city or town, state or province, country, ZIP						OMB No. 1545-0116
or foreign postal code, and telephone no.						Form 1099-NEC
						Form 1099-NEC	Nonemployee
							Nonemployee
						(Rev. January 2022)	Compensation
						For calendar year
						20
PAYER’S TIN	RECIPIENT’S TIN			1 Nonemployee compensation			Copy C
				$			Copy C
				$			For Payer
RECIPIENT’S name				2 Payer made direct sales totaling $5,000 or more of			For Payer
RECIPIENT’S name				2 Payer made direct sales totaling $5,000 or more of
				consumer products to recipient for resale			For Privacy Act and
							For Privacy Act and
				3			Paperwork Reduction
				3			Act Notice, see the
							Act Notice, see the
Street address (including apt. no.)							current General
							Instructions for Certain
				4 Federal income tax withheld			Instructions for Certain
				4 Federal income tax withheld			Information Returns.
City or town, state or province, country, and ZIP or foreign postal code				$
				5 State tax withheld	6 State/Payer’s state no.		7 State income
				$			$
Account number (see instructions)			2nd TIN not.	$			$
				$			$
Form 1099-NEC (Rev. 1-2022)		www.irs.gov/Form1099NEC				Department of the Treasury - Internal Revenue Service

Instructions for Payer

To complete Form 1099-NEC, use:

•The current General Instructions for Certain Information Returns, and

•The current Instructions for Forms 1099-MISC and 1099-NEC.

To order these instructions and additional forms, go to www.irs.gov/EmployerForms.

Caution: Because paper forms are scanned during processing, you cannot file certain Forms 1096, 1097, 1098, 1099, 3921, or 5498 that you print from the IRS website.

Filing and furnishing. For filing and furnishing instructions, including due dates, and to request filing or furnishing extensions, see the current General Instructions for Certain Information Returns.

Need help? If you have questions about reporting on Form 1099-NEC, call the information reporting customer service site toll free at 866-455-7438 or 304-263-8700 (not toll free). Persons with a hearing or speech disability with access to TTY/TDD equipment can call 304-579-4827 (not toll free).

Documents used along the form

The 1099-NEC form is an essential document for reporting nonemployee compensation. However, it is often accompanied by other forms and documents that help clarify the tax reporting process. Here is a list of some commonly used forms and documents related to the 1099-NEC.

Form W-9: This form is used by individuals to provide their taxpayer identification number (TIN) to the payer. It helps ensure that the correct TIN is reported on the 1099-NEC.
Form 1040: This is the standard individual income tax return form. Recipients of the 1099-NEC report their nonemployee compensation on this form.
Schedule C: Self-employed individuals use this form to report income or loss from a business they operated. It is often used to report nonemployee compensation received.
Form 8919: If a worker believes they were incorrectly classified as an independent contractor, this form is used to calculate and report uncollected social security and Medicare tax.
Form 1040-ES: This form is used to make estimated tax payments. Self-employed individuals who receive nonemployee compensation may need to use it to pay taxes quarterly.
Form 1065: Partnerships use this form to report income, deductions, gains, and losses from their operations. It is also where partners report their share of the partnership's income.
Schedule K-1: This form is issued to partners in a partnership to report their share of income, deductions, and credits. It is essential for partners receiving nonemployee compensation.
Form 1096: This is a summary form that accompanies paper filings of information returns, including the 1099-NEC, when submitted to the IRS.
Durable Power of Attorney Form: To ensure your financial matters are managed effectively, refer to our essential Durable Power of Attorney resources for comprehensive guidance.
IRS Publication 1779: This publication provides guidance on determining whether a worker is an independent contractor or an employee, which can affect how the 1099-NEC is used.
IRS Publication 1141: This publication offers guidance on printing forms 1099 and other information returns, ensuring compliance with IRS requirements.

Understanding these forms and documents is crucial for both payers and recipients to ensure accurate reporting and compliance with tax regulations. Each plays a specific role in the broader context of tax reporting and helps clarify the responsibilities of all parties involved.