After the deadline, but within 30 days
$60 per form
After 31 days - August 1st
$120 per form
After August 1st, or not at all
$310 per form
Intentionally not filing
$630 per form
1099 Forms › Form 1099-NEC Instructions for 2024
Form 1099-NEC consists of 12 boxes (fields), including two checkboxes. Each box requires specific information related to the reporting. The following is a breakdown of each box on the IRS Form 1099-NEC and an explanation of how to complete each.
Complete the Payer Details section. This includes:
Complete the Recipient Details section. This includes:
In Boxes 1 to 7, the payer reports applicable payments and tax withheld from the recipient:
Enter the non-employee compensation if payment is $600 or more for a calendar year.
Mark an "X" in the checkbox if you have made sales of consumer products totaling $5,000 or more to a person for resale purposes, using a buy-sell, deposit-commission, or another commission basis. These sales are intended for resale by the buyer or another person anywhere other than in a permanent retail establishment. Do not enter a monetary value in this box. This was previously reported on Form 1099-MISC. Filers can report it in Form 1099-NEC Box 2 or Form 1099-MISC Box 7.
The IRS has left Box 3 blank for any additional information in the future.
Enter the amount of tax withheld from the payments made to your recipient. This withheld amount is commonly known as backup withholding. The IRS mandates payers to withhold a specific percentage of payment from the recipient when they do not provide the correct TIN information to the payer.
Input the state tax withholding if applicable in your state. Each recipient can have two state payments.
Enter your employer's state identification number and the abbreviated name of your state— for instance, TX– Texas, CA – California.
Enter the amount of the state payment for the corresponding state listed in Box 6.
Form 1099s must be distributed by the employer to the recipient on or before January 31st
Note: If the filing deadline lands on a Saturday, Sunday, or legal holiday, the due date will automatically be extended to the following business day.
Visit our deadlines article to learn more about Form 1099 due dates.
Most states also have a filing deadline of January 31st, but some may vary. View our state deadlines post to learn more about the state filing deadlines.
Each Form 1099 has five different copies with their specific purpose:
IRS copy for paper filing.
Filed with the State Tax Department.
Recipient state copy used for state income tax reporting.
Payer's copy for their records.
Get started with BoomTax, and file your 1099 tax forms with federal/state and mail recipient copies from one place. BoomTax will never remove past years' filings, and you can continue to make corrections at any time, no matter the year. File my 1099 directly to the IRS Now!
Note: IRS recommends that payers utilize the e-file option over paper filing for faster processing.
Are you concerned about managing various copies of Form 1099-NEC? Switch to an e-filing solution and file your 1099-NEC with the IRS and state agencies in a few simple steps. You can also send recipient copies via postal mail and online access.
You can import your data as Excel, XML, or use files from popular payroll providers like QuickBooks, UKG, ADP, and many more.
We walk you through the process with no complicated jargon. You can also live chat with a real person as you work on your filing for hands-on help.
Once your data is loaded, you can e-file and distribute employee copies in minutes.
Failing to file Form 1099 by the deadline or meeting the deadline but providing incorrect recipient information can result in IRS penalties ranging from $60 to $630, depending on how late the form is submitted. The IRS has increased the penalty amounts for the 2024 filing year.
1099 penalties may be subject to the following:
The IRS is accustomed to changing rules year-to-year, sometimes even in the middle of the current tax season! This is why having the most accurate information about the IRS requirements and deadlines for filing any Form 1099 is essential. Use reliable tax software to e-file your forms and stay updated on any changes in regulations or deadlines.
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BoomTax and its affiliates do not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors prior to engaging in any transaction.