Document 1099-NEC eFile 2025
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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.
- 3. Excess Golden Parachute Payments
- Enter any excess golden parachute payments. An excess parachute payment is the amount over the base amount (the average annual compensation for services includible in the individual's gross income over the most recent 5 tax years).
- A parachute payment must meet four conditions: 1) payment is compensation-related, 2) paid to a disqualified individual, 3) contingent on corporate ownership/control change, and 4) aggregate present value of at least three times the individual's base amount.
- 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.