How to Manually Enter Data and File Form 1099-NEC

We are breaking down how to easily file a 1099-NEC Form with TaxBandits! Stay tuned for a step-by-step guide:

Once you’ve signed in to TaxBandits, select “Start New” in the upper right corner:

Select form 1099-NEC:

Verify the tax year you are filing for:

Click “Start Now” under “Manual Data Entry”:

Begin by providing the business information. You can enter the information manually, or you can select a business from your address book by clicking “Select Business”

If you have already added the recipient to the business, you can search for the employee by name or SSN or by selecting the “Address Book Lookup” icon or by adding the Employee Name or SSN in the search bar.

If you have not added the recipient, you can manually enter the data in each line.

Check the box if you want to provide the recipient with online access to their form

The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 1099 form series.

Box 1: Nonemployee Compensation

Enter nonemployee compensation of $600 or more. Include fees, commissions, prizes, and awards for services performed as a nonemployee, other forms of compensation for services performed for your trade or business by an individual who is not your employee, and fish purchases for cash.

Include oil and gas payments for a working interest, whether or not services are performed. Also, include expenses incurred for the use of an entertainment facility that you treat as compensation to a nonemployee. Federal executive agencies that make payments to vendors for services, including payments to corporations, must report the payments in this box. 

Box 2: Payer made direct sales totaling $5,000 or more of consumer products to the recipient for resale

Box 4: Federal Income Tax Withheld

Enter backup withholding. For example, persons who have not furnished their TINs to you are subject to withholding on payments required to be reported in box 1.

Boxes 5–7. State Information

These boxes are provided for your convenience only and need not be completed for the IRS. Use the state information boxes to report payments for up to two states. If you withheld state income tax on this payment, you may enter it in box 5.

In box 6, enter the abbreviated name of the state and the payer’s state identification number.

In box 7, you may enter the amount of the state payment. If a state tax department requires that you send them a paper copy of this form, use Copy 1 to provide information to the state tax department. Give Copy 2 to the recipient for use in filing the recipient’s state income tax return. 

If you need to report information for more than one state, select “Add New State”. Contact your state DOR for specific reporting information.

When the form is completed, select “Save and Continue”

You will be directed to verify the USPS Recommended Address, ensure the address for the recipient is accurate, and select “Continue”.

Now you can choose to begin a new form, edit or preview the recently filed form, adjust your services, or continue filing.

After clicking “Continue” Update any errors, then click “Continue”:

Select the business(es) you are filing for, review your order details, then click to “Complete Your Order”:

When using prepaid credits, there is no need to enter or process a credit/debit card to file. Simply select “Confirm and Transmit”:

Want to see steps for other business types, forms, or features? Comment below to make a request for a future blog!

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