Nec Là Gì

Jean Murray, MBA, Ph.D., is an experienced business writer & teacher. She has written for The Balance on U.S. business law và taxes since 2008.

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Here’s what khổng lồ know about the new 20trăng tròn Form 1099-NEC, who should use it, & adjustments to lớn Form 1099-MISC.


What Is Form 1099-NEC?

The new Form 1099-NEC—which is actually an old size that hasn"t been in use since 1982—is used to report any compensation given to nonemployees by a company. The IRS has separated the reporting of payments to nonemployees from Form 1099-MISC và redesigned it for tax year 20đôi mươi.


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 Internal Revenue Service

Who Uses Form 1099-NEC?

All businesses must tệp tin a Form 1099-NEC size for nonemployee compensation if all four of these conditions are met:


It is made to someone who is not your employee.It is made for services in the course of your trade or business.It was made to an individual, partnership, estate, or corporation.The payments made lớn the payee were at least $600 or more for the year.

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Fees paid by one professional to lớn another (fee-splitting, for example)Payments for services including payment for parts or materials used to lớn perkhung the services if they were incidental khổng lồ the serviceCommissions paid lớn nonemployee salespeople not repaid during the year

You must also tệp tin Form 1099-NEC for anyone from whom you withheld federal income tax underbackup withholding rulesfor any amount, even if it’s less than $600.


Don’t use Form 1099-NEC lớn report personal payments. It’s only khổng lồ be used for payments if you are in a trade or business for profit.


Where lớn Get a Form 1099-NEC

You can visit the IRS trang web to lớn tải về an online copy of Form 1099-NEC. While it"s possible khổng lồ order paper copies of the form from the IRS, as of September 20đôi mươi, the National Distribution Center is closed until further notice & cannot take order for forms or publications.


What to lớn Do If You Don't Receive sầu Form 1099-NEC

Form 1099-NEC must be filed with the IRS và given lớn nonemployees by January 31 after the reporting year. If you"re a nonemployee và haven"t received your size by then, liên hệ the company directly to lớn request it. You will need it for your personal tax return, so it"s important to get it promptly.


Payer"s informationRecipient"s informationNonemployee compensation amountFederal income tax withheldState information

Both payer"s & recipient"s information includes their name, address, andtaxpayer ID. Nonemployee compensation can be found in box 1 and should include the total compensation for the past tax year.


Box 4 is khổng lồ report any federal income tax withheld, although it"s uncommon that this will be the case unless you have sầu received a backup withholding order for that person. If your state has an income tax, include the total payment amount to lớn that person for the year and any state tax you withheld in box 5.


StateAddress
Alabama, Arizona, Arkansas, Delaware, Floridomain authority, Georgia, Kentucky, Maine, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexiteo, Thủ đô New York, North Carolimãng cầu, Ohio, Texas, Vermont, VirginiaDepartment of the Treasury Internal Revenue Service Center Austin, TX 73301
Alaska, Coloravì, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, North Dakota, Oklahoma, Oregon, South Carolimãng cầu, South Dakota, Tennessee, Utah, Washington, Wisconsin, WyomingDepartment of the Treasury Internal Revenue Service Center P.O. Box 219256 Kansas City, MO 64121-9256
California, Connecticut, District of Columbia, Louisiamãng cầu, Maryland, Pennsylvania, Rhode Island, West VirginiaDepartment of the Treasury Internal Revenue Service Center Ogden, UT 84201

How to File Form 1099-NEC

The forms must be filed with the IRS before January 31 using either paper or electronic filing. If youfile electronically, you’ll need khổng lồ use the IRS FIRE system.


Form 1099-NEC is used to report nonemployee compensation.Compensation only needs to lớn be reported on Form 1099-NEC if it exceeds $600 for the previous tax year.Nonemployee compensation was previously included on the 1099-MISC khung.