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E-File IRS Form 1099-NECNonemployee Compensation

File 1099-NEC Nonemployee Compensation forms electronically with instant IRS confirmation. Fast, secure processing for businesses reporting payments to independent contractors and freelancers.

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Nonemployee Compensation Reporting

Accurately report payments to independent contractors and freelancers

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Bulk Processing

Process multiple 1099-NEC forms efficiently with bulk upload

About Form 1099-NEC

Form 1099-NEC is used to report nonemployee compensation of $600 or more paid to independent contractors, freelancers, and other service providers during the tax year. This form was reintroduced in 2020 to separate nonemployee compensation reporting from Form 1099-MISC.

Who Must File Form 1099-NEC?

Businesses paying contractors:Report payments to independent contractors and freelancers
Service providers:Report payments for services performed by non-employees
Professional services:Report payments to attorneys, accountants, consultants, and other professionals
$600 or more threshold:File 1099-NEC for recipients who received $600 or more

Common Types of Contractors

Independent contractors and freelancers
Consultants and professional service providers
Attorneys and legal service providers
Accountants and tax preparers
Marketing and advertising agencies
IT consultants and software developers
Construction contractors and subcontractors
Graphic designers and creative professionals

Form 1099-NEC Boxes Explained

Box 1 - Nonemployee Compensation

Payments for services performed by non-employees ($600 or more)

Box 2 - Payer Made Direct Sales

Check if payer made direct sales of $5,000 or more to recipient

Box 4 - Federal Income Tax Withheld

Federal income tax withheld under backup withholding rules

Box 5 - State Tax Withheld

State income tax withheld from payments

Box 6 - State/Payer's State No.

State identification number of the payer

Box 7 - State Income

State income subject to state tax withholding

Filing Deadlines

Critical Deadlines

  • • Provide to contractors: January 31st
  • • File with IRS: January 31st (both paper and electronic)
  • • Earlier deadline than other 1099 forms
  • • State filing deadlines may vary

Required Information

  • Contractor name, address, and Tax Identification Number
  • Payer name, address, and Employer Identification Number
  • Total nonemployee compensation paid during the tax year
  • Federal and state income tax withheld (if applicable)
  • Direct sales indicator (if $5,000 or more in direct sales)

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1099-NEC Filing Process

Simple 4-step process to file your 1099-NEC forms

1

Contractor Information

Enter or import contractor details and tax identification numbers

2

Compensation Details

Input compensation amounts and any taxes withheld

3

Review & Verify

Review all 1099-NEC information for accuracy and completeness

4

E-File & Distribute

Submit to IRS and provide copies to contractors

Why E-File Your 1099-NEC Forms?

Advantages of electronic filing over paper forms

Meet Early Deadline

January 31st deadline for both recipients and IRS

Secure & Accurate

Built-in error checking and secure transmission

Instant Confirmation

Receive immediate filing confirmation from IRS

Bulk Processing

Process hundreds of contractor forms efficiently

Frequently Asked Questions

Common questions about Form 1099-NEC filing

What is Form 1099-NEC?

Form 1099-NEC is used to report nonemployee compensation of $600 or more paid to independent contractors, freelancers, and other service providers during the tax year. This form was reintroduced in 2020 to separate nonemployee compensation from other miscellaneous income.

When are 1099-NEC forms due?

1099-NEC forms must be provided to recipients by January 31st and filed with the IRS by January 31st (both paper and electronic). This is earlier than most other 1099 forms due to the importance of contractor income reporting.

Who needs to file 1099-NEC forms?

Any business that pays $600 or more to independent contractors, freelancers, or other non-employees for services during the tax year must file 1099-NEC forms. This includes payments to sole proprietors, partnerships, and LLCs.

Do I need to file 1099-NEC for corporations?

Generally, you don't need to file 1099-NEC for payments to corporations (C-Corp or S-Corp). However, you must file for payments to attorneys and law firms, regardless of their business structure, and for medical and healthcare payments.

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