Where to File 1099 Nec? Have you paid $600 or more to an independent contractor? Then, you need to file form 1099 NEC. Confused in filing the 1099 NEC Form? Which filing is the best process to report 1099 NEC? Paper filing or e-filing? Relax!! We provide you the best service to find out which process is easy, convenient and secured one. You can also know about the process of filing the form 1099 Online NEC, advantages of e-filing of the form 1099 NEC , IRS authorized e-file provider and due date of filing the 1099 NEC Online form.
When you need to File 1099 NEC Form?
If a Payer withheld any federal income tax of about $650 under backup withholding rules, then the payer needs to file form 1099 NEC.
What is a backup withholding means?
A backup withholding is an income tax withholding required for non employees and other transactions.
For example: If the payee’s taxpayer identification number is missing or not verified, then the payer must withhold income taxes from the payee.
What are circumstances to 1099 NEC form online filing?
The following are the circumstances to IRS 1099 NEC online form:
- If the payees receives non-employee compensation amount of more than $600 annually.
- Withhold of federal income tax of more than $600 by the payer.
- Payments made with non-employee.
Process of filing the Form 1099 NEC:
Filing of the Form 1099 Non-Employee Compensation is of two types. They are:
- Paper filing the form 1099 NEC.
- E-filing the form 1099 NEC.
Form 1099 NEC Paper Filing
Paper filing of the form 1099 NEC is reported to the IRS through the mail. This process is a time-consuming one. Schedule1 copy is received within 4-6 weeks.
How to E-file Form 1099 NEC?
E-filing form 1099 is an easy and secure process. Nowadays, electronic filing is the most adopted method by taxpayers. Before e-filing the 1099 NEC form, select the IRS authorized e-file provider for safe and secure transactions.
Follow the steps to e-file your form 1099 NEC:
- Firstly, select the secured IRS e-file provider.
- Sign up or create a new account in the e-file provider site.
- Select the form you are filing i.e. form 1099 NEC.
- Enter the required details in the respective boxes of the 1099 NEC form.
- Pay the processing fee with the e-file provider to report your 1099 NEC form with the IRS.
- Schedule 1 copy is sent by the IRS to the registered e-mail address provided by the payer.
How to File IRS 1099 NEC?
Gather the required information to file the form 1099 online NEC. The below details will help you in filing the form 1099 NEC easily.
- Taxpayer information includes name, address, and taxpayer identification.
- Payee’s information includes name, address, and tax payer identification of the payee who receives non-employee compensation.
- Box 1: Non-employee compensation amount is entered.
- Box 2: Reserved.
- Also, Box 3: Reserved.
- Box 4: if you withhold any federal income tax amount, then you should enter the amount in this box.
- Box 5-7: State information which includes state income tax withheld and tax amount paid to the payee annually.
If you are not withholding any federal income tax, then you need to enter amount details in the box-4 of form 1099 NEC?
The answer is “NO”. If you are not withholding any federal income tax, there is no need to enter the amount in the form 1099 NEC box 4. You can leave that box while filing the form. Or else the box is empty if there is no withholding of the federal income tax amount.
Advantages of e-file the form 1099 NEC:
Now-a-days, Electronic-filing of the form has become mandatory for every tax payer. Below are the few advantages of e-filing form 1099 NEC:
- Less consumption of time.
- Avoids fraudulent scams or duplication of the forms.
- Errors are reduced.
- Accurate data is reported to the IRS.
- Immediate confirmation process
- Secures and protects the information provided by the payer.
What is an IRS authorized 1099 e-file provider?
As paper filing of forms more than 25 is impossible. To avoid this, the IRS provided a database for the convenience to the tax payer’s. This online database allows you to report your 1099 NEC online fast and easily to the IRS.
What you have to do to avoid 1099 Form penalties imposed by the IRS?
The best thing you have to do is, file your 1099 NEC form within the due date to avoid penalty.
What is the last date to efile 1099 NEC form online?
The 1099 NEC Form must be filed by the tax payer’s within January 31 of the tax year.
Note: if the due date falls on Saturday, Sunday, National holiday, then file the form within the next day.
So! Are you ready to e-file your NEC form with us? Then why you are waiting! Without any confusion about Where to File 1099 Nec 2020, File your 1099 NEC Pdf with us easily and conveniently. As time is valuable, don’t waste it. Utilize your precious time by filing with us fast and securely.