What is 1099 NEC form?
The 1099 NEC form was reintroduced in the 2020 tax year in an effort to simplify the Form 1099-MISC and allow for easier reporting of payments to vendors or contractors. It allows taxpayers to independently report non-employee compensation, such as those paid to vendors, freelancers, and independent contractors, amounting to $600 or more annually.
Form 1099 NEC Changes For 2025 tax year
IRS Form 1099 NEC for the year 2025 does not have any substantial regulatory changes at the form level compared to NEC for the year 2024 Tax Year.
Who Should File 1099 NEC?
Entities required by the IRS to report using Form 1099 NEC include for-profit businesses, trusts of qualified pensions or profit-sharing plans, nonprofits, government agencies, tax-exempt organizations under section 501(c) or 501(d), farmers' cooperatives, and widely held fixed investment trusts.
1099 NEC Deadline for 2025 tax year
| Filing Type | Due Date |
|---|---|
| Recipient Copy | February 2, 2026 |
| IRS eFile | February 2, 2026 |
| IRS Paper Filing | February 2, 2026 |
1099Online eFiling Services
1099Online, an authorized IRS agent, offers a secure and efficient platform for eFiling 1099-NEC forms. The process is streamlined to eliminate the need for software downloads and concerns about data security.
Key Features of 1099Online eFiling
Secure Transmission: 1099Online securely transmits your 1099 NEC forms to the IRS, providing instant confirmation upon successful submission.
Expert Support: In case of IRS rejection due to inaccuracies or inconsistencies, 1099Online's tax experts assist in resolving conflicts and help you eFile corrected 1099-NEC reporting at no additional cost.
Ready to file? Start free—pay only when you submit to the IRS.
Start e-Filing NowFiling Requirements for 2025
To successfully eFile 1099 NEC forms in 2025, ensure you have accurate details for both payer and recipient, including names, Taxpayer Identification Numbers (TINs), and addresses. Details such as non-employee compensation and federal tax withheld, are essential. Additionally, state filing details, including Payer State Number and State Tax Withheld, may be required.
1099Online's 4-Step eFiling Process
Enter Federal & State Tax Details: Input accurate federal and state tax details for both payer and recipient.
Validate Your Tax Details: Ensure the entered information is accurate and compliant with IRS regulations.
Submit Your Returns: Utilize 1099Online's streamlined submission process for quick and secure eFiling.
Download Recipient Copy Instantly: Receive immediate access to the recipient copy upon successful submission.
Frequently asked questions
The 1099 NEC filing is mandatory in the following states. However, it is
important to note that in some of these states, sending the forms is only
required if state income tax is withheld. To confirm this requirement, it is
advisable to directly check with the respective state authorities.
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware,
District
of Columbia, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky,
Louisiana,
Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri,
Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North
Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina,
Utah, Vermont, Virginia, West Virginia, Wisconsin.
The 1099 NEC filing is mandatory in the following states. However, it is important to note that in some of these states, sending the forms is only required if state income tax is withheld. To confirm this requirement, it is advisable to directly check with the respective state authorities.
Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Virginia, West Virginia, Wisconsin.
The threshold for the requirement for submission of a "Nonemployee
Compensation"
form is aggregate payments must be equal to or exceed $600. If the payment
falls
below this threshold, it is not necessary to report it to the IRS unless
there
is federal backup withholding.
The threshold for the requirement for submission of a "Nonemployee Compensation" form is aggregate payments must be equal to or exceed $600. If the payment falls below this threshold, it is not necessary to report it to the IRS unless there is federal backup withholding.
As per IRS guidelines, entities are required to submit Form 1099 NEC for
every
individual categorized as a non-employee to whom they have disbursed a
minimum
of $600 for rendered services.
As per IRS guidelines, entities are required to submit Form 1099 NEC for every individual categorized as a non-employee to whom they have disbursed a minimum of $600 for rendered services.
Both Form 1099-NEC and Form 1099-MISC are used to report income to the IRS, but
they
have
different purposes:
Form 1099-NEC (Nonemployee Compensation):
Purpose : This form is used to report non-employee compensation, such
as
payments made to freelancers, independent contractors, and self-employed
individuals.
Types of income reported: This form reports income that is subject to
self-employment tax, such as wages, fees, and commissions.
Filing deadline: The deadline to file Form 1099-NEC is February 02nd,
following the calendar year in which the payments were made.
Form 1099-MISC (Miscellaneous Income):
Purpose: This form is used to report miscellaneous income, such as
rent,
royalties, prizes and awards, and fishing boat proceeds.
Types of income reported: This form reports income that is not
subject to
self-employment tax.
Filing deadline: The deadline to file Form 1099-MISC is March 31st,
following
the calendar year in which the payments were made.
Here's a table summarizing the key differences:
Feature
Form 1099-NEC
Form 1099-MISC
Purpose
Report non-employee compensation
Report miscellaneous income
Types of income reported
Income subject to self-employment tax (wages, fees, commissions)
Income not subject to self-employment tax (rent, royalties,
prizes
and
awards)
Filing deadline
February 02nd
March 31st
Purpose : This form is used to report non-employee compensation, such as payments made to freelancers, independent contractors, and self-employed individuals.
Types of income reported: This form reports income that is subject to self-employment tax, such as wages, fees, and commissions.
Filing deadline: The deadline to file Form 1099-NEC is February 02nd, following the calendar year in which the payments were made.
Form 1099-MISC (Miscellaneous Income):Purpose: This form is used to report miscellaneous income, such as rent, royalties, prizes and awards, and fishing boat proceeds.
Types of income reported: This form reports income that is not subject to self-employment tax.
Filing deadline: The deadline to file Form 1099-MISC is March 31st, following the calendar year in which the payments were made.
Here's a table summarizing the key differences:| Feature | Form 1099-NEC | Form 1099-MISC |
|---|---|---|
| Purpose | Report non-employee compensation | Report miscellaneous income |
| Types of income reported | Income subject to self-employment tax (wages, fees, commissions) | Income not subject to self-employment tax (rent, royalties, prizes and awards) |
| Filing deadline | February 02nd | March 31st |