What Businesses Need to Know About Form 1099-NEC in 2023
What businesses need to know about Form 1099-NEC in 2023
New years often bring changes, and tax forms are no exception.
We know 1099s can be a little confusing, so we’re here to tell you everything you need to know about Form 1099-NEC for the 2022 tax year.
What is Form 1099-NEC?
Form 1099-NEC is an IRS tax form that is used to report payments of $600 or more made to non-employees. This was previously reported on box 7 of Form 1099-MISC, but the IRS has separated reporting for non-employee compensation with the 1099-NEC.
Businesses should use this form report
- Fees
- Commissions
- Prizes
- Awards
- Other forms of compensation for service
What information should be reported on 1099-NEC?
If you have made any of the following payments during the year, the IRS requires you to file Form 1099-NEC.
- At least $600 or more to the payee during the year
- Payments to individuals who are not on your payroll
- Paid an individual, estate, partnership, or corporation
- Made payments for services related to your trade or business
If you made the payment, then you are the payer. The following information is needed to complete this tax form.
- Payer’s name
- Payer’s address
- Payer’s TIN
- Recipient’s name
- Recipient’s address
- Recipient’s TIN
- Nonemployee compensation
- Federal income tax withheld
- (State filing requirements) State income, payer state number, and state tax withheld
Is there anything new on 1099-NEC for 2022?
Until 2019, Form 1099-MISC was used to report non-employee compensation. In 2020, the IRS reintroduced Form 1099-NEC for this purpose.
There are no updates to the form for the 2022 tax year.
Does TaxBandits support the 1099-NEC?
Yes! Not only does TaxBandits support Form 1099-NEC, but we also support Form 1099-MISC and other 1099 forms.
The deadline to file Form 1099-NEC is January 31st, 2023 for the recipient and IRS copies regardless of filing methods.
Filing with TaxBandits
With TaxBandits the filing process is simple and straightforward. Our inbuilt audit checks ensure that you fix any errors before transmitting your return to the IRS. TaxBandits can also handle your recipient copies! We offer postal mail services as well as the option to access recipient copies via a secure online portal. Get started today to e-file 1099-NEC in minutes.
