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.

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.

• 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.

1. Which states require filing 1099 NEC?

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.

2. What is the minimum threshold that requires the submission of a 1099 NEC form?

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.

3. Are there any rules to file 1099 NEC?

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.

4. What is the difference between Form 1099-NEC and Form 1099-MISC?

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 January 31st, 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: