Document 1099-NEC eFile 2024
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1099-NEC - Help
- a. Payer's name, street address, city or town, state or province, country, zip or foreign postal code, and telephone number
- As the payer, enter your business address details.
- b. Payer's TIN, also known as federal identification number
- Enter your federal identification number. You can choose between a Employee Identification Number (EIN) or a Social Security Number (SSN). Sole proprietors usually use their SSN.
- c. Recipient's name, street address, city or town, state or province, country, zip or foreign postal code, and telephone number
- Enter the recipient's name and address as it appears in official documentation such as paid stubs, W-9's etc.
- d. Recipient's TIN, also known as identification number
- Enter the recipient's federal identification number. You can choose between a Employee Identification Number (EIN) or a Social Security Number (SSN), both of which are 9 digits.
- e. Account number (see instructions)
- The account number is used to identify different 1099-NEC's you might have for the same recipient. The account number can be anything you choose as long as it 1) is not a taxpayer id number (TIN) or Social Security Number (SSN) and 2) is within 20 characters long.
- Please keep in mind that if you need to file multiple 1099-NEC's for the same recipient, each 1099-NEC will need to have a different account number. This will keep each file unique, while also making it easy to refer to each document if necessary.
- If you only have one 1099-NEC for an individual, feel free to use a simple number (e.g. '1') to make filing easier.
- f. 2nd TIN not.
- Check this box if the IRS has notified you twice in the last 3 calendar years that your recipient has given you an incorrect TIN. The IRS will not send further notices regarding this recipient if you checked this box.
- 1. Nonemployee Compensation
- Enter amounts of $600+ made to nonemployees. However, do not use the 1099-NEC to report gross proceeds to an attorney; use the 1099-MISC instead. Additionally, do not use the 1099-NEC to report payments of rent to real estate agents or property managers; use the 1099-MISC instead. Lastly, do not use the 1099-NEC to report cash payments for the purchase of fish for resale purposes; use the 1099-MISC instead.
- 2. Payer Made Direct Sales of $5,000 or More
- Check this box if you made direct sales of $5000+ of consumer products to a recipient on a buy-sell, deposit-commission, or other commission basis anywhere other than a permanent retail establishment.
- 4. Federal Income Tax Withheld
- Enter any backup federal income tax withheld.
- 5. State Tax Withheld
- Enter state income tax withheld for up to two states.
- 6. State/Payer's State no.
- Enter the two-letter abbreviated name of the state and your state identification number assigned by the state.
- 7. State Income
- Enter the amount of earned income in each respective state.