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If you paid someone who is not your employee, such as a subcontractor, attorney or accountant $600 or more for services provided during the year, a Form 1099-NEC needs to be completed, and a copy of 1099-NEC must be provided to the independent contractor by January 31 of the year following payment.
How to file a 1099 formGather the required information.Submit Copy A to the IRS.Submit copy B to the independent contractor.Submit form 1096.Check if you need to submit 1099 forms with your state.
The 1099-NEC requires the business/payor's name, address, phone number, and employer identification number. It also requires the payee's name, address and tax identification number. For nonemployee compensation, the total amount paid for the year goes in box 1 of the 1099-NEC.
Complete Form 1099-MISC with the name, address and tax identification number copied from the IRS Form W-9 for accuracy. Don't complete Form 1099-MISC for any workers hired by the contractor or subcontractor, as these individuals do not receive direct payment from you.
You should have the following on hand to fill out the 1099-MISC form:Payer's (that's you!) name, address, and phone number.Your TIN (Taxpayer Identification Number)Recipient's TIN.Recipient's name and address.Your account number, if applicable.Amount you paid the recipient in the tax year.