e-File Form 1099-NEC with us Start Filling Now >>

e-File Form 1099-NEC with us Start Filling Now >>

How Do You File A 1099-NEC Form?

There are two ways to file your 1099-NEC form:

a.  e-Filing
b.  Paper filing

However, you need to check with your state revenue department before filing your form, as some states have their own filing rules that you need to follow.

How Do You File Your 1099-NEC Return Manually?

To file your form manually, you'll need to order official forms from the IRS website. After furnishing the form, you need to file Copy A with the IRS and Copy 1 with the State tax department (if applicable). Copy B of the form must be filled and sent to the recipient who received the compensation from you. The last copy, Copy C, should be kept for your records.

How Do You e-File Your 1099-NEC Return?

You can e-file your form with a trusted, IRS approved e-filing provider like Freelance Central to e-file your form 1099-NEC online. Follow the below steps to e-file with Freelance Central: 

Step 1: Log in to your Freelance Central account. If you do not have an account, sign up to create a new one.

Step 2: Once you log in, click on the ‘File 1099-NEC’ option on the dashboard.

Step 3: Click on the ‘Add New Business’ box. With Freelance Central, you also have the option to import business details from QuickBooks.

Step 4: On the ‘Add Business Details’ page, Enter the following information:

  • Name
  • Business name
  • Country
  • Mobile number
  • Zip code
  • Email address
  • City
  • TIN or SSN
  • State
  • Address
  • Number of full-time employees
  • Number of contractors
Once you complete these fields, click on ‘Next Step’ at the bottom of the page.

Step 5: On the next page, select your business name from the list and click on ‘Next’.

Step 6: You will be directed to the ‘Add recipient’s State’ page, where you need to select the state your recipient belongs to. If you want to file returns for multiple recipients across the US, you may enter multiple states. Once selected, click ‘Next.’

Some states require details of state tax withholding. In such instances, you will be asked if State Tax Withholding is applicable. Choose Yes or No depending on your state rules and click ‘Next’.

Step 7: On the next page, select the recipients for whom you want to file the return and click on ‘File 1099-NEC’. If you want to add details of more than one recipients, you may do so by clicking the ‘Add New Recipient’ button at the bottom.

Step 8: You will be directed to the ‘Review and Pay Service Fee’ page, where you will find the summary of your business and its e-filing details.

Carefully review the details and ensure that they are correct. Once reviewed, scroll down to the bottom of the page, where you need to enter your debit/credit card details. Once details are entered, click on 'Submit' to make the payment.

Step 9: Once you make the payment, you will be redirected to the ‘Return Submitted Successfully’ page, where your transaction ID will be displayed. You will also receive a confirmation mail on your registered email address.

You can view your submitted form by clicking on the link provided in the email. Once you click on the link, you will be redirected to an ‘Authentication’ page where you need to enter the last four digits of your SSN to view the form. You can download a PDF version of the form by clicking the ‘Download’ button at the bottom of the page.
 

What Details Are Required to Add A New Recipient?

You need to have the following information ready before adding a new recipient:

  • Filing year
  • Nonemployee compensation amount
  • Recipient’s name
  • Details of Federal income tax withheld
  • Recipient’s zip code
  • Recipient’s State
  • City and State
  • Details of State Tax Withheld (if applicable)
  • State Income (the total derived from the business in the particular state)
  • Country (by default, it will be the United States of America)
  • Recipient’s address, mobile number and email address
  • Recipient’s SSN
  • Employee ID (if applicable)

What Are the Benefits of e-Filing Your 1099-NEC Form?

e-Filing has many benefits. Here are some of them:  

  1. E-filing your form is easy and saves you a lot of time.
  2. E-filing reduces errors while filling out the details.
  3. If you are filing with a trusted e-filing provider like Freelance Central, you will be eligible for free services such as postal address verification and mailing of copies to recipients.
  4. When you file your form online, the processing time is faster compared to paper filing.
  5. Paper filers have to send their form to the IRS and the recipients much ahead of the deadline as it will take days (even weeks) for it to reach the IRS. if you are filing the form closer to the deadline, e-filing is the best way to go, as your files are instantly processed online in just minutes.
  6. e-filing allows you to upload bulk returns in one go, while those who file manually have to spend a lot of time manually furnishing each form separately.

Details Needed for Furnishing Form 1099-NEC

  • Your name, address, and phone number
  • Your TIN (Taxpayer Identification Number)
  • Recipient’s name, address, and TIN
  • Nonemployee compensation amount
  • Federal and state income tax withheld

Details Required For Adding A New Recipient

  • Nonemployee compensation amount
  • Recipient’s name
  • Filing year
  • Details of Federal income tax withheld
  • Recipient’s zip code, city and state
  • Details of State Tax Withheld (if applicable)
  • State Income (the total derived from the business in the particular state)
  • Country (by default, it will be the United States of America)
  • Recipient’s address, mobile number and email address
  • Recipient’s SSN
  • Employee ID (if applicable)

Frequently Asked Questions around Form 1099-NEC

Q. What are State Filing Requirements for 1099-NEC Forms?

A. As 1099-NEC is not a part of the IRS Combined Federal/State Filing (CF/SF) program, some states might require you to file the form with the state department directly. Freelance Central can help you e-file your form for all the states where e-filing is mandated. There are specific rules in some states, such as submitting the furnished form through CDs or USB drives. Such methods must be carried out by the business as we do offer such services.

Q. What is ‘2nd TIN Notification’?

A. If the recipient has submitted an incorrect taxpayer identification number (TIN), the IRS will send you a notice notifying the same. If you were notified by the IRS twice within 3 calendar years, you need to tick the box so that the IRS will stop sending you TIN notices.

Q. What is ‘FATCA Filing Notification’?

A. You need to check the ‘FATCA filing notification’ box if your recipients are subject to the Foreign Account Tax Compliance Act.

Q. Can You Apply For A Filing Extension?

A. No, you cannot apply for a filing extension for the 1099-NEC form. You need to file the form before 31st January to avoid incurring penalties.

Final Thoughts

If you’re unsure of how to file your 1099-NEC form, you can reach out to our customer support team to clarify your doubts and concerns. It is always a good idea to get in touch with your state department to understand your state’s filing requirement before furnishing the NEC forms. And most importantly, rely on a trusted service provider like Freelance Central to e-file your form to avoid confusion and stay compliant.

The deadline to file 1099-NEC is January 31. Use Freelance Central for easy and fast filing. Register with us now and file your first form for free. Hurry!
The deadline tofile 1099-NEC is January 31
Hurry, file safely with Freelance Central
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