Are you new to filing 1099 Forms? Getting confused how to file? Don’t worry! You’re required to file 1099 tax forms with the IRS to provide information about the payments made to independent contractors in the prior year. With the help of 1099 information returns, the IRS checks whether the individuals who are receiving contractor income are reporting their taxes or not.
Be aware of the new form which was introduced in 2020 tax year for reporting non-employee income to the IRS. We’ll let you know about how do you create and e-file 1099 NEC for the 2020 tax year.
What and when do you report payments through 1099 NEC?
The IRS requires you to file a Form 1099 NEC for any non-employee that you:
- Paid $600 or more in cash during the previous year.
- Payments are on the course of business or trade.
- Withheld any federal income tax under backup withholding rules.
1099 NEC tax form is due to the IRS by February 1st, 2021. The due date is same to furnish the copy of Form 1099 NEC to the recipient. As we know, 1099 NEC Form is a new tax form introduced for 2020 tax year, it doesn’t participate in CF/SF program. Make sure, whether you’re required to file 1099 NEC with the state. If you need to file form with the state, you need to file them directly.
Setup your 1099 Form account
When you’re filing both 1099 NEC and 1099 MISC, you may need to adjust your account and contractor payments. This is determined by which type of boxes you select for types of payments you made to non-employees. Most businesses only select “non-employee compensation” for contractor payments. In this case, no adjustment is needed. However, you need to select other types of payments to report, you’ll need update your business file.
Create your 1099 NEC Forms in Form 1099 online
Before creating your 1099 NEC Forms in Form 1099 online, you need to signup by providing email address. After signing in by providing email address and password, here’s how to get your 1099 Forms ready to e-file or print. Below steps walk you organizing your contractors and payments so your filings are correct.
- Go to the payroll menu, then select contractors.
- Select prepare 1099 Forms, and then let’s get started.
- Make sure your business name, address, and the tax ID matches with the IRS or not.
- Select the boxes that represent the type of payments made to all of your contractors this year, then select next.
- Verify that all of your contractors shown up and their personal information, and email addresses are correct.
- Review the payments totals for each box you selected in step 4.
- Select E-file for me to e-file your 1099 Forms.
E-file 1099 NEC procedure
After preparing and verifying the information is correct on your 1099 NEC form, it’s time to e-file:
- After preparing your 1099 NEC Form, select the E-file form me option.
- Verify your Form, and then select continue.
- Review your 1099 Forms and make sure that the information brought over from Form 1099 online is correct. Select all or select only the 1099 NEC Form you want to submit. Then select continue.
- Enter your billing information, then select approve. This information is not imported from Form 1099 online. First time users need to enter billing and credit card information.
- Review the number of forms, and the total amount, then select continue.
- View and download and submit 1099 Forms. If you select view forms button, you’ll only get copy A that we have sent to the IRS. Other copies are available from the Home page.
- Select continue. Submit final Forms to submit it. Make sure that you’ve reviewed 1099 NEC Forms before submitting.
How to check your 1099 Form filing status?
After you file your 1099 NEC Form to the IRS with the above steps, we’ll notify your filing status through email. You can also check your filing status anytime by logging in your 1099 E-file account.
Given below are the list of statuses, and what they mean:
This means that you’ve e-filed Form 1099 NEC to the IRS. When you need to revise it, you may need to file a manual amendment Form. Use the IRS instructions to file an amendment form.
Received by the IRS
When the IRS received your form 1099 NEC, and is either processing it, or has already approved it, you can see “Received by the IRS”. Filers who have submitted their 1099 E-file forms will receive a confirmation email approximately within one week. After the IRS accepts and confirms your submissions. You may not receive this confirmation until the middle of January or later.
If you haven’t e-filed Form 1099 NEC with the IRS, you can see “Not submitted” as the status. You can continue revising it.
Can you file another set of Form 1099 NEC?
Yes, you can file another set of Form 1099 NEC. Open Form 1099 online, then go to the payroll menu. Then select contractors, and prepare 1099 Forms. If contractors are not added yet, add them before going to the 1099 e-file now.
When you’re filing 1099 NEC for a separate business, once you’ve logged into the Form 1099 online service. You will see the last business you filed on the Toolbar. Select the dropdown and then “Add another Form 1099 online service Subscription”. This will give you a page to begin entering the next business information.
Have you got the detailed information about new 1099 NEC tax form? Report the payments to non-employees made in 2020 tax year through 1099 NEC in 2021. We provide you service to e-file 1099 information returns in a secure way. Form 1099 online is the best IRS authorized e-file provider where your information is secured by 256-bit security encryption. File your 1099 NEC online sitting at your place through Form 1099 Online.